Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. i am having some difficulties finding the irr and

I am having some difficulties finding the IRR and NPV, and the discounted payback period of...

70.2K

Verified Solution

Question

Finance

I am having some difficulties finding the IRR and NPV, and thediscounted payback period of a Capital project for Intel that willlast 12 yrs:

Project Cost; 10% of PPE : 4,897,600

Annual Depreciation: 387,726.67 /yr over 12 yrs

Annual EBIT: 881,568

WACC: 6.55%

Free Cash Flows (Year 1-12): 825,038.54

Answer & Explanation Solved by verified expert
4.3 Ratings (664 Votes)
The NPV of the project is calculated as follows 4897600 82503854 106551 82503854 106552 82503854 106553 82503854 106554 82503854 106555 82503854 106556 82503854 106557 82503854 106558 82503854 106559 82503854 1065510 82503854 1065511 82503854 1065512 1815507953 IRR of the project is calculated by using the below formula Lower Rate Lower Rate NPV Lower Rate NPV Higher Rate NPV x Higher Rate Lower    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A B H G my iPhone K C F D E

Geometry
Q

(RELIGIOUS LITERATURE) Explain how the Qur'an says the ideal person should behave and how this expectation...

Psychology
Q

MANAGERIAL ACCOUNTING - TRUE OR FALSE STATEMENTS. (PLEASE SKIP IF YOU ARE NOT ABLE TO ANSWER THEM...

Accounting
Q

Nutrient agar Nutrient agar 7 5 NaCl The data in the table indicate that S...

Biology
Q

Question Let the curve C be the function f y 6y5 1 over the interval...

Calculus
Q

A company receives $9,800 cash for performing landscaping services. Which of the following general journal...

Accounting
Q

Assignment: Prepare an income statement and a balance sheet. Sales: 577219 ...

Accounting
Q

Problems #24 & 25require the Indirect Method for computations of cash flows: 24]...

Accounting
Q

New Deli is in the process of closing its operations. It sold its three-year-old ovens...

Accounting
Q

The following information relates to Beetcon Limited for the year ended 30 June 2014. Accounting...

Accounting
Q

At the beginning of 2017, Splish Brothers Inc. acquired equipment costing $106,600. It was estimated...

Accounting
Q

Financial data for Joel de Paris, Inc., for last year follow: The company paid dividends...

Accounting