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Consider the following project that requires a single investment of $250,000. The project is over 4 years time. You can sell the asset at

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Consider the following project that requires a single investment of $250,000. The project is over 4 years time. You can sell the asset at the end of year 4 for $110,000. Annually you generate an additional $70,000 in revenue as a result of your investment. However your operating expenses increase by $20,000/year. Year CAPITAL Operating Expenses Revenue Salvage Value 0 -250,000.00 1 2 3 4 Total -250,000.00 -20,000.00 70,000.00 -20,000.00 70,000.00 -20,000.00 70,000.00 -20,000.00 70,000.00 110,000.00 -80,000.00 280,000.00 110,000.00 A-Calculate the net cashflow by year for your project B-Generate a NPV profile for a range of discount rates from 0% to 30% in steps of 2%. C-PLOT the results and obtain a NPV/Discount rate graph D. What is the IRR % for this project?

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