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Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows:YearCash Flow 0 $ 1 , 7 8 5
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows:YearCash Flow$ All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are blocked and must be reinvested with the government for one year. The reinvestment rate for these funds is percent. Assume Anderson uses a required return of percent on this project.What is the NPV of the project?Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to decimal places, egWhat is the IRR of the project?
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