The present paper focuses on the simulation of the high-velocity impact of a projectile impacting on a water-jet, causing the onset, development and collapse of cavitation. The simulation of the fluid motion is carried out using an explicit, compressible, density-based solver developed by the authors using the OpenFOAM library. It employs a barotropic two-phase flow model that simulates the phase-change due to cavitation and considers the co-existence of non-condensable and immiscible air. The projectile is considered to be rigid while its motion through the computational domain is modelled through a direct-forcing Immersed Boundary Method. Model validation is performed against the experiments of Field et al. [Field, J., Camus, J. J., Tinguely, M., Obreschkow, D., Farhat, M., 2012. Cavitation in impacted drops and jets and the effect on erosion damage thresholds. Wear 290–291, 154–160. doi:10.1016/j.wear.2012.03.006. URL http://www.sciencedirect.com/science/article/pii/S0043164812000968 ], who visualised cavity formation and shock propagation in liquid impacts at high velocities. Simulations unveil the shock structures and capture the high-speed jetting forming at the impact location, in addition to the subsequent cavitation induction and vapour formation due to refraction waves. Moreover, model predictions provide quantitative information and a better insight on the flow physics that has not been identified from the reported experimental data, such as shock-wave propagation, vapour formation quantity and induced pressures. Furthermore, evidence of the Richtmyer-Meshkov instability developing on the liquid-air interface are predicted when sufficient dense grid resolution is utilised.