A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of11 %. What is the project?s NPV? (Hint: Begin by constructing a time line.)

attached is what I have so far. I figured out the NVP but cannot find the IRR or the MIRR. I think I have done something wrong. Please help!

Scottye Davis 6/18/2016 Ch 10: 3, 4 Ch 10: 1,2,4,5 Questions 3 4 With short term projects, you receive the return on investment in a shorter time period and with long term If projects are mutually exclusive, managers would choose the project that provides the greatest increase in Problems 1 NPV=CF0 R= PLUS CF1 (1+R)1 PLUS CF2 (1+R)2 PLUS 0.11 YEAR Project NPV= $ $ $ $ $ $ $ 0 (40,000.00) (31,891.89) (24,587.29) (18,006.57) (12,077.99) (6,736.93) (1,925.16) $ 2,409.77 1 $8,108.11 1.11 2 $7,304.60 1.2321 3 4 5 $6,580.72 $5,928.58 $5,341.06 1.367631 1.51807041 1.685058155 12.84% 2 0.0165946483 IRR Rate period and with long term projects the opposite is so. Any fluctuation in the cost of capital could greatly affect the roi for long term project des the greatest increase in wealth, even though it may not have the highest rate of return. CF2 (1+R)N NPV= 6 7 $4,811.77 $4,334.93 1.870414552 2.07616015 2409.77 affect the roi for long term projects