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Anderson International Limited is evaluating a project in ErewhonThe project will create the following cash flows Year Cash Flow -5582,000 212,000 155,000 220000 199,000 All
Anderson International Limited is evaluating a project in ErewhonThe project will create the following cash flows Year Cash Flow -5582,000 212,000 155,000 220000 199,000 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 created by a foreign company are blocked" and must be reinvested with the government for one year The reinvestment rate for these funds is 7 percentAssume Anderson uses a required return of 13 percent on this project. What is the NPV of the project ? Note: A negative answer should be indicated by a minus sign. not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16. b What is the IRR of the yroiec * t ^ 2 Note: Do not round intermediate calculations and enter your answer as percent rounded to 2 decimal places , e.g.. 32.16 a NPV 125,542.99 IRR 15.71%
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