$4$

Growth Enterprises believes its latest project, which will cost $$80,000$ to install, will generate a perpetual growing stream of cash flows. Cash flow at the end of the first year will be $$6,000,$ and cash flows in future years are expected to grow indefinitely at an annual rate of $5\%.$

$10$

points

a$.$ If the discount rate for this project is $10\%,$ what is the project NPV$?$

Note: Do not round intermediate calculations.

Answer is complete and correct.

NPV

$

$40,000$

b$.$ What is the project IRR?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

Answer is complete but not entirely correct.

$\backslash$table$[[$IRR$,0\mathrm{.}00,\%$