Begin by plotting how the NPV of this project changes with different discount rates. Note that...

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Finance

Begin by plotting how the NPV of this project changes withdifferent discount rates. Note that you'll have to find the NPV ofthe project first using a discount rate of your choosing.Use a data table to create this plot. Have your discountrates range from 0% to 60% in increments of 2%. Please label yourx-axis "Discount Rate" and your y-axis "Net Present Value of CashFlows". Title your graph "NPV Calculation". There should be nolegend on the graph. How many IRRs does this project have? What arethey? Perform your IRR calculations in the box on the left.
Year
Cash Flow
0
-1000
1
800
2
1000
3
1300
4
-2200

Answer & Explanation Solved by verified expert

3.8 Ratings (643 Votes)

Given Cash flow in year 0 CF01000Cash flow in year 1 CF1800Cash flow in year 2 CF21000Cash flow in year 3 CF31300Cash See Answer

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Transcribed Image Text

Begin by plotting how the NPV of this project changes withdifferent discount rates. Note that you'll have to find the NPV ofthe project first using a discount rate of your choosing.Use a data table to create this plot. Have your discountrates range from 0% to 60% in increments of 2%. Please label yourx-axis "Discount Rate" and your y-axis "Net Present Value of CashFlows". Title your graph "NPV Calculation". There should be nolegend on the graph. How many IRRs does this project have? What arethey? Perform your IRR calculations in the box on the left.YearCash Flow0-1000180021000313004-2200