I am having some difficulties finding the IRR and NPV, and the
discounted payback period of...
70.2K
Verified Solution
Link Copied!
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: Zin AI - Your personal assistant for all your inquiries!