am. 111. GHK3678910111213141516Question 5: Your company is considering a project with an initial investment of $1000. The initialcashflow will grow 10% every year for 11 years. (For example, if the initial cashflow is $10, in year 2it will be $11, in year 3 it will be $12.10, etc.)A) Use solver to find what initial cashflow the project would require to be accepted on an IRR basis.B) Use solver to find what initial cashflow the project would require to have an NPV greater than or.equal to $1,000.*note you need to input NPV and IRR formulas, as well as set up the cashflows*WACC17 Intial CFCopy answer values here12%Part A AnswerPart B Answer18 NPV19 IRR2021YearCash flow22232401232252627282945673031932103311©

a)1. Set up the Cash Flows: We establish the cash flows for each year, with the initial investment…

Answered: G H K 3 6 7 8 9 10 11 12 13 14 15 16…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 20P

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