A project is being considered which has an initial cost of £210m and produces cash flows of £52m over each of the following seven years. The firm has a cost of capital for this type of project of 11%.

Determine (i) the Internal Rate of Return (IRR) of the project (to the nearest 0.01%) and (ii) the net present value (NPV) of the project (to the nearest £.01million).

a

(i) 16.00% and (ii) £28.06million

b

(i) 14.73% and (ii) £28.06million

c

(i) 14.73% and (ii) £35.03million

d

(i) 16.00% and (ii) £35.03million

e

None of the above