Amazon Ltd is considering investing in a new software development project with the following forecasted details: Initial amount invested is R600,000 and expected residual value is R50,000.

Year	Cashflows	Discount factor
Year 1	R200,000	0.909
Year 2	R220,000	0.826
Year 3	R230,000	0.751
Year 4	R240,000	0.683
Year 5	R250,000	0.621

Assuming that the cost of capital for the company is 8%. The cash flows are after tax and depreciation is charged at R60,000 per year. Tax rate is 25%.

Required:

1. Calculate each of the following: 1.1.1. Net Present Value (NPV) (10) 1.1.2. Internal Rate of Return (IRR) (10)