问题如下:
2. The NPV and IRR, respectively, of the Gasup Company investment are closest to:
选项:
A.$509,600 and 21.4%.
B.$509,600 and 31.3%.
C.$946,700 and 31.3%.
解释:
A is correct.
The cash flows (in $ million) for the 5-year gas project are as follows:
Given the required rate of return of 18 percent, the NPV can be calculated with Equation 2 or with a financial calculator:
Similarly, the IRR can be calculated from Equation 3:
Solving for r with a financial calculator or spreadsheet software will yield 21.4 percent for the internal rate of return. Note that in spite of the fact that we are dealing with a nonconventional cash flow pattern, the IRR has a unique solution. The NPV profile declines as the required rate of return increases, and the NPV value crosses the x-axis (required rate of return) only one time, at 21.4 percent.
做着题有点犯迷糊了,能不能详细讲下判断sunk costs的标准?我以为这里的环保费用是sunk costs是这个project必要支出的一项所以没有考虑