A two year project requires a $70,000 initial investment. In the following two year it will generate positive cash flow: $40,000 in the first year and $50,000 and in the second .

a. Calculate the project Net Present Value if the discount rate is 17%? Try 18%?

b. From the results in a, can you guess a possible range for IRR?

c. What is the project IRR

(you can use excel for this, however, if you consider: = 1/(1+) , you can write the problem as a quadratic function and solve manually)

PLease provide details how you get to the answer