Question

Using the following data: Initial Investment = $10,000,000 Cash Inflow – Year 1 = $3,000,000 Cash...

Using the following data:

  • Initial Investment = $10,000,000
  • Cash Inflow – Year 1 = $3,000,000
  • Cash Inflow – Year 2 = $3,500,000
  • Cash Inflow – Year 3 = $4,000,000
  • Cash Inflow – Year 4 = $4,900,000
  • Cash Inflow – Year 5 = $5,000,000
  1. Calculate Internal Rate of Return
  2. Calculate Net Present Value (assuming a required return of 8%)

Please show work so I can recreate in excel

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Calculate the IRR and NPV as follows:

Formulas:

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