25) A proposed project has an initial cost of $271,202.73 with estimated incremental cash flows of $150,000 for each of the next two years. What is the IRR of this project? C) 7% B) 5% D) 9% A)3% eter s paribus, assume the following: Year zero: Capital investments $7.5 million and needed inventory; Years 1-5: OCF $2,500,000 per year, Year 5: Recover capital and in addition, cash flow from salvage of $1.0M, What is the ir 26) OOM,at is the incremental cash flow for year 5? of earlier increase in working C) $4.5 million B) $3.5 million D) $5.5 million A) $2.5 million in the indicated cells in Excel for years zero through 3, respectively A1--$1,000; A2 $600; A3$500; A4 - $200. In addition, the f of the following would be the correct formula to compute the NpV 27) Consider the following projected cash flows in the indicated cells in % is in cell A5 , which A) NPV(A5, A2:A4) + A1 C) NPV(A5, A2:A4) - A1 B) NPV(A5, A1 A4) D) Sum(A1:A4/(1 + A5)4 A-3