2027 10000 2028 11000 Determine the following: a. NPV for the period 2022 through 2028; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter15: Harvesting The Business Venture Investment
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Problem 1
Suppose your company wants to place an investment with a private equity firm with an
amount of Php 200,000 for 2021. Considering all the risks involved, the prevailing
discount rate is 12% and with a revenue stream/dividends below:
2022
5000
2023
6000
2024
7000
2025
8000
2026
9000
2027
10000
2028
11000
Determine the following:
a. NPV for the period 2022 through 2028;
b. Total NPV using manual computation;
c. Total NPV using the Excel function; and
d. IRR rate.
Transcribed Image Text:Problem 1 Suppose your company wants to place an investment with a private equity firm with an amount of Php 200,000 for 2021. Considering all the risks involved, the prevailing discount rate is 12% and with a revenue stream/dividends below: 2022 5000 2023 6000 2024 7000 2025 8000 2026 9000 2027 10000 2028 11000 Determine the following: a. NPV for the period 2022 through 2028; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.
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