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2. A firm is considering investing in a project with the following cash flows: Points in time (yearly intervals) 0 1 2 3 4 Project

2. A firm is considering investing in a project with the following cash flows:

Pointsin time (yearly intervals)

0

1

2

3

4

Project A

-180,000

50,000

60,000

70,000

80,000

cost of capital is 10 per cent.

Required:

a) Calculate the internal rateof return (IRR) (1.5 marks)

For project A: try 15% and 16%

b) Calculate the net present value (NPV) for each project. (1 mark)

so fast plz

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