1) which factor should not be considered in project cash flow estimation?

a. opportunity costs

b. sunk costs

c. externalities

d. inflation

e. a and b

f. c and d

2) A project is expected to create cash flows (FCFF) as scheduled below:

Initial investment = $5 million

CF1 = $0 million

CF2 = $1.5 million

CF3 = $2 million

CF4 = $1 million

CF5 = $3 million

What is internal rate of return (IRR) for this project? (Type the rate in decimal format in the answer box, not in percentage.)