Franklin Ltd is assessing a project with these financial projections:

• Initial amount invested is R1,000,000 with an expected residual value of R90,000.

Year	Cashflows	Discount factor
Year 1	R150,000	0.909
Year 2	R170,000	0.826
Year 3	R180,000	0.751
Year 4	R130,000	0.683
Year 5	R140,000	0.621

Cost of capital is 9%. Depreciation is R80,000 per year. Tax rate is 28%.

Required:

1. Calculate each of the following:
   • 1.6.1 Net Present Value (5)
   • 1.6.2 Internal Rate of Return (5)