Part A: Your answers should be brief and to the point. Show your calculations, do not just give an answer. Question 1 The free cashflows of an all-equity project are set out below. Year Cashflows 0 -15,000 1 -15,000 2 +1,000 3 +1,500 4 +2,000 5 +2,500 6 +3,300 Thereafter the free cashflows grow indefinitely […]
Tag Archives: IRR
Discuss about NPV and IRR, as according to NPV, the company needs to wait 3 years instead of buying equipment now. Describe how both were calculated and note anything important about your findings.
Talk about NPV and IRR, as according to NPV, the company needs to wait 3 years instead of buying equipment now. Describe how both were calculated and note anything important about your findings. Then, talk about how sensitive was the analysis to the choice of discount rate? Discuss the relation between NPV and discount rate […]
