6b3

Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. Green Landscapings cost of capital is 10.30 percent. What is the NPV of a project if the initial costs are $2,106,000 and the project life is estimated as 10 years? The project will produce the same after-tax cash inflows of $512,558 per year at the end of the year.

Round the answer to two decimal places.

Your Answer:

6c3

Find the internal rate of return (IRR) for the following series of future cash flows. The initial outlay is $680,025.

Year 1: 189,200

Year 2: 141,300

Year 3: 192,700

Year 4: 164,900

Year 5: 187,000

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

You should use Excel or financial calculator.