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A company has the following cash flows. Year 0 -$588,000 Year 1 218,000 Year 2 161,000 Year 3 226,000 Year 4 205,000 All the cash

A company has the following cash flows.

Year 0   -$588,000

Year 1     218,000

Year 2   161,000

Year 3   226,000

Year 4   205,000

All the cash flows have to be reinvested a year after they are actually listed at a reinvestment rate of 5%.

The required rate of return is 12%


Find the Net Present Value and the IRR.

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