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Assume that the firm invests $170,000 today and $200,000 three years from now to get $75,000 at Year 1, $80,000 at Year 2, $75,000 at

Assume that the firm invests $170,000 today and $200,000 three years from now to get $75,000 at Year 1, $80,000 at Year 2, $75,000 at Year 3, $140,000 at Year 4, $165,000 at Year 5, and $155,000 at Year 6. Whats the Net Present Value of this investment? Assume the interest(discount) rate of 10.8%.

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$164,245.52

$154,737.20

$138,425.79

$146,426.50 (answer)

Same facts as above: what is this project's Internal Rate of Return?

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25.62%

38.12%

30.83%

We do not have sufficient information to answer this question.

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