1. A company is considering a project that will cost $100,000. To determine market potential, the company paid $5000 to a firm to perform market research. The firm estimates that the project will produce $15,000 in the first 2 years and $25,000 in the remaining 3 years. At the end of the project the company can sell the assets for $20,000 after taxes. The hurdle rate is 6.5%.

What is the project's total cash flow in the final year?

2. A company is considering a project that will cost $100,000. To determine market potential, the company paid $5000 to a firm to perform market research. The firm estimates that the project will produce $15,000 in the first 2 years and $25,000 in the remaining 3 years. At the end of the project the company can sell the assets for $20,000 after taxes. The hurdle rate is 6.5%.

What is the project's IRR? (Convert to a percent. Enter only numbers in your response.)