15 Cleveland Cliffs is considering purchasing the ore ship "Buckalo". The initial outlay is $10,000,000. The ship will generate $3,500,000 per year in net cash in-flows. Cliffs plans to sell/scrap the vessel after five years for $1,000,000. If the firm uses a required rate of return of 13% on similar projects, calculate the "Buckalo" projects NPV.

a. 2,853,069

b. 1,776,325

c. 1,543,225

d. 1,302,321

16 What is the Buckalo's IRR

a. 23.76%

b. 20.16%

c. 17.05%

d. 15.37%