4) Bloomberg, Inc. is considering a 5-year expansion investment project that requires an initial fixed asset investment of $100 million and is expected to generate cash flows of $10,000,000 per year forever. The required return is 10%. a. What is the NPV of the project? b. Is the IRR higher or lower than 10%? Why?

4) Bloomberg, Inc. is considering a 5- year expansion investment project that requires an initial fixed asset investment of $100 million and is expected to generate cash flows of $10,000,000 per year forever. The required retur is 10%. a. What is the NPV of the project? b. Is the IRR higher or lower than 10% ? Why