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. Should the company invest? Why or why not? Year Cash flow 2022 5,000.00 2023 6,000.00 2024 7,000.00 2025 8,000.00 2026 9,000.00 2027 10,000.00 2028 11,000.00 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.

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. Should the company invest? Why or why not? Year Cash flow 2022 5,000.00 2023 6,000.00 2024 7,000.00 2025 8,000.00 2026 9,000.00 2027 10,000.00 2028 11,000.00 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

Section: Chapter Questions

Problem 1eM

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A reputable company plans to place an investment with a private equity firm with an amount of Php 10M for 2023. Considering all the risks involved, the prevailing discount rate is 12% and with a revenue stream/dividends below: 2023 2024 2025 2026 2027 2028 2029 995,000.00 1,380,000.00 1,575,000.00 1,930,000.00 2,954,000.00 3,408,644.00 6,354,941.00 Find the NPV.
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Year	Cash flow
2022	5,000.00
2023	6,000.00
2024	7,000.00
2025	8,000.00
2026	9,000.00
2027	10,000.00
2028	11,000.00

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.