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Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow $1,280,000 455,000 520,000 415,000 370,000
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow $1,280,000 455,000 520,000 415,000 370,000 0 2 3 4 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 4 percent. If Anderson uses a required return of 12 percent on this project, what are the NPV and IRR of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) NPV IRR
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