a) Suppose that the free cash flow of a five-year investment is $500,000 for each of the next five years. The investment (purchase of a machine) will have a salvage value of $400,000 in year 6. The cost of the investment is $2,000,000. Write the relevant equation to find the IRR using the above information.

b) Calculate the net PV of that project assuming a relevant discount rate of 20%.