1) Consider the Hoofdstad Project, which requires an investment of $1 billion initially, with subsequent cash flows of $200 million, $300 million, $400 million, and $500 million. We can characterize the project with the following end-of-year cash flows: Cash Flow Period (millions) 0 -$1,000 1 200 2 300 3 400 4 500 What is the net present value of the Hoofdstad Project if the required rate of return of this project is 5%? 2) What is the internal rate of return of the project above? 3) What is the payback period