3. You are considering investing in an oce building. Your initial investment is $300,000. The project is expected to generate annual cash ows of:

$45,000 in year 1;

$50,000 in year 2;

$80,000 in year 3;

$100,000 in year 4, and

$290,000 in year 5.

You require a rate of return (discounted rate) of 11%. What is the net present value (NPV) of this investment? In addition, calculate the IRR and decide if this investment is worth undertaking.