It is an additional cost that would generate additional sales. I want to use
NPV and IRR to estimate the feasablity of this investment.

"Fred Smith" wrote:

What is it you want to evaluate? What does "TOTAL IR" mean? Where do the
Invest amounts come from? Are they the return on investment in each year? If
so, what was the original amount invested? What results are you looking for?

Regards,
Fred.

"FA" wrote in message
...
Please help.

I want to evalue the returns of a series of investments as shown below.
2008 2009 2010 TOTAL IR = 0.05
INCR Sales $166,873 $813,114 $1,266,398 $2,246,385
Invest. $(105,500) $(164,150) $(170,609) $(440,259)
TOTAL $61,373 $648,964 $1,095,790 $1,806,126

I'm not sure if I should use NPV, IRR or PV. When I use the formula I
also
have problems understanding the results.

Looking forward to your suggestions.

FA