15. Problem 11.20 (NPV) A project has annual cash flows of $7,500 for the next 10 years and...

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15. Problem 11.20 (NPV)
A project has annual cash flows of $7,500 for the next 10 yearsand then $9,500 each year for the following 10 years. The IRR ofthis 20-year project is 11.67%. If the firm's WACC is 8%, what isthe project's NPV? Do not round intermediate calculations. Roundyour answer to the nearest cent.
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4.3 Ratings (663 Votes)

Step1 Calculation of Initial Investment Cost for the Project The question has given he Internal Rate of Return IRR as 1167 IRR is the rate at which the present value of the annual cash flow equals to the initial Investment or it can say that at IRR the present value of the annual cash flow Initial Investment or at IRR NPV will be Zero Initial Investment Present Value of the See Answer

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15. Problem 11.20 (NPV)A project has annual cash flows of $7,500 for the next 10 yearsand then $9,500 each year for the following 10 years. The IRR ofthis 20-year project is 11.67%. If the firm's WACC is 8%, what isthe project's NPV? Do not round intermediate calculations. Roundyour answer to the nearest cent.$