Consider the following scenario for a project:

• Initial investment: $85,000
• Expected rate of return: 7%
• Cash flows over the next 5 years:
  • Year 1: $14,000
  • Year 2: $16,000
  • Year 3: $19,000
  • Year 4: $21,000
  • Year 5: $23,000

Determine:

1. The Net Present Value (NPV) of the cash flows.
2. The Internal Rate of Return (IRR).

Fill in the table below with the Present Value (PV) calculations and summarize the NPV and IRR.

Year	Amount	Present Value
1	$14,000
2	$16,000
3	$19,000
4	$21,000
5	$23,000
Initial Investment	$85,000
NPV
IRR (est)