An investment project has the following cash flows over its economic life of three years: Year 0 1 2 3 Cash Flow (£/$/€/NOK): -142,700 51,000 62,000 73,000 Required: 1) Calculate the net present value (NPV) of the project at a discount rate of 0, 10 and 20 per cent respectively. 2) Draw a graph of the project NPVs calculated under 19 and use the graph to estimate, and clearly indicate, the project internal rate of return (IRR) to the nearest integer percentage.
An investment project has the following cash flows over its economic life of three years: Year 0 1 2 3 Cash Flow (£/$/€/NOK): -142,700 51,000 62,000 73,000 Required: 1) Calculate the net present value (NPV) of the project at a discount rate of 0, 10 and 20 per cent respectively. 2) Draw a graph of the project NPVs calculated under 19 and use the graph to estimate, and clearly indicate, the project internal rate of return (IRR) to the nearest integer percentage.
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