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Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow 0 $ 1 , 2
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash 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. If Anderson uses a required return of percent on this project, what are the NPV and IRR of the project? A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to decimal places, eg Enter your IRR as a percent.
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