ABC Manufacturing Company will invest in a stamping plant in Madison Ohio. The plant requires an initial outlay of $100,000,000. Net cash inflows from the project are expected to be $40,000,000 for the first year, $35,000,000 for year 2 and 3, and $15,000,000 for years 4 through 10, at which time the stamping plant will be sold for scrap for $10,000,000. If the stamping plant's cost of capital is 10%:

9 What is the projects NPV (closest answer)

a. 52,500,000

b. 51,200,000

c. 50,306,000

d 50,000,000

10 What is the project's IRR (closest answer)

a. 20.00%

b. 21.00%

c. 22.00%

d 23.00%

e 24.00%