62 Consider the following stream of expected net cash flow (NCT) receipts for an investment project: -2 -3 NCFS (5000's) -850 120 +280 +380 +320 Calculate the net present value (NPV) of the project assuming a required cate of renu (WACC) of 10% (also assame the project evaluated is of average risk for the firm considering undertaking it). b) What is the internal rate of retum (IRR) of the project in the above? Show the equation you would need to solve as well as the specific IRR value 63 Consider the project below which is available to company MPT. Net cash flow's (NCES, $ millions) 1=0 -500 101 +$310 I= 2 +S390 (a) If you assunto del MIPT's nominal moncy) discount rate for ur project is 10%, what is the project's NPV? b) What can you say about the project's IRR Circle the correct answer below It is luyler than the discount rate of 10% It is lower than the discount rate of 10% It is equal to the discount rate of 10% (6) What is the NPV of the project when discounting the project's real cash flows at the real discount iste? For this purpose, assume that the Consumer Price Index is slow (=0) 1,000 points and is expected to be 1,030 points in one year's time t-1) and 1,050.6 points in two years' time it 2). id) In relation to your NPV calculation in (c) above iodicate the levels of each of the Lollowing The real S amount of the 1-1 cash flow LED Thac cca Samount of de i=2 cash llow (11) The real rate of discount relevant to pecod 1. R.0-1 ie, the discount rate for the period t=0 to 1=1) 10 (iv) The real rate of discount relevant to period 2, Rr1 2 (1.e., the discount rare for thac period i=1 to 1=2)