An investment project has the following expected cash flows over its economic life of three years:

Required:
(i) Calculate the net present value (NPV) of the project at discount rates of 0%, 10% and 20%
respectively.
(ii) Draw a graph of the project NPVs calculated in (i) and use the graph to estimate, and clearly indicate, the project internal rate of return (IRR) to the nearest integer percentage.

Transcribed Image Text:

Year 0 1 2 3 () (142 700) 51000 62 000 73 000