1. What is the internal rate of return on an investment with the following cash flows?
Year FCF ($mln)
1 -87,400
2 21,600
3 48,900
4 28,000
5 4,170
2. What is the net present value of a project with the following cash flows if the required rate of return is 14 percent?
Year FCF ($mln)
1 -33,680
2 10,796
3 22,308
4 4,170
3. What is the net present value of a project that has an initial cash outflow of $18,900 mln and the following cash inflows? The required return is 13.25 percent.
Year FCF ($mln)
1 -3,600
2 4,200
4 12,500