Calculate the npv and irr of project


Problem:

Disney Resorts is considering a five-year project that will cost $150 million to build, and will generate the following cashflows:

Year 1: $20 million
Year 2: 35 million
Year 3: 40 million
Year 4: 50 million
Year 5: 55 million

Question 1: Calculate the NPV and IRR of this project. If Disney's cost of capital for similar projects is 20%, do you recommend that they go ahead with this project?

Note: Please provide reasons to support your answer.

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Finance Basics: Calculate the npv and irr of project
Reference No:- TGS0879446

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