HP0-J67 · Question #120
You are working on a project with an initial investment of $200 and an anticipated cash flow as shown in the exhibit.
The correct answer is B. NPV=310 and IRR=26. This question asks to calculate the Net Present Value (NPV) and Internal Rate of Return (IRR) for a project given an initial investment and anticipated cash flows from an exhibit.
Question
You are working on a project with an initial investment of $200 and an anticipated cash flow as shown in the exhibit.
Options
- ANPV=325 and IRR=18
- BNPV=310 and IRR=26
- CNPV=355 and IRR=18
- DNPV=340 and IRR=26
How the community answered
(43 responses)- A19% (8)
- B65% (28)
- C12% (5)
- D5% (2)
Why each option
This question asks to calculate the Net Present Value (NPV) and Internal Rate of Return (IRR) for a project given an initial investment and anticipated cash flows from an exhibit.
The calculated NPV and IRR values do not match the correct financial analysis of the given project's cash flows and initial investment.
Based on the project's initial investment of $200 and the provided cash flow exhibit, the correct financial calculation yields a Net Present Value (NPV) of $310 and an Internal Rate of Return (IRR) of 26%. These values represent the project's profitability and investment attractiveness according to standard financial analysis methods.
The calculated NPV and IRR values do not match the correct financial analysis of the given project's cash flows and initial investment.
While the IRR might be correct, the Net Present Value provided does not align with the accurate financial calculation for the project.
Concept tested: Project financial analysis (NPV, IRR calculation)
Topics
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