Question
1. A firm is starting a new project that will cost $200,000. It is projected to last 5 years and to generate cash flows of
1. A firm is starting a new project that will cost $200,000. It is projected to last 5 years and to generate cash flows of $50,000, $70,000, $90,000, $50,000 and $30,000 from Years 1 through 5 respectively. If the discount rate is 10%, what is the NPV of this project? Round to the nearest penny. Do not include any unit such as $, %, etc. If there are multiple answers, then type NA.
2. A firm is starting a new project that will cost $200,000. It is projected to last 5 years and to generate cash flows of $50,000, $70,000, $90,000, $50,000 and $30,000 from Years 1 through 5 respectively. If the discount rate is 10%, what is the IRR of this project? Answer in the percent format. Round to the hundredth decimal place. Type only numbers without any unit ($, %, etc.)
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