Am I allowed to open up several threads in one day when the other threads i opened have not been answered? because i have many topics I am stuck on, so I cant combine it into one? since they are all different topics.
However, if I am not allowed, this thread can be deleted, until someone else have helped me in other threads?
Its about NPV and IRR.
What is the formula for it in a calculator? I have looked in many websites, but it doesn't explain itself clear enough.
The formula can be used to work these out?
1. A company is considering whether to spend £1100 on equipment. It is expected that profits from the project will be £1000 after one year, and £100 after each of the second and third years.
Management are only interested in projects yielding at least 9% per annum.
What is the Net Present Value of this investment (to the nearest pound)? (NPV answer)
2. An investment has an NPV of £4000 at 9% and an NPV of £1000 at 12%. What is the Internal Rate of Return? (IRR answer)
Thanks if anyone can help! muchly appreciated.