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

Calculus
1.2K views

Find and simplify the difference quotient f x 7 OA 1 OB 0 O C...

Calculus
1.2K views

QUESTION 16 3 points Find cos x sin x 6 da

Accounting
1.2K views

DataSpan, Inc., automated its plant at the start of the current year and installed a...

Accounting
1.2K views

Chapter 20 Group 1 Managing Costs and Budgets Do this exercise with a...

Accounting
1.2K views

A corporate charter specifies that the company may sell up to 20 million shares of...

Accounting
1.2K views

Data related to the inventories of Kimzey Medical Supply are presented below: In applying the...

Accounting
1.2K views

what internal controks were missing that enabled the World Com fraud to take place ?...

Accounting
1.2K views

Swifty Company uses a standard cost accounting system. During January, the company reported the following...

Accounting
1.2K views

All of the following characteristics are common to both tangible and intangible noncurrent assets with...

Accounting
1.2K views

Wiseman Company purchased merchandise on account from a supplier for $85,000, terms 1/10, n/30. Wiseman...

Accounting
1.2K views

Sofa 8 hours Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials....

Finance
1.2K views

A security is expected to produce the following returns depending on the state of the...