Growth Enterprises believes its latest project, which will cost $170,000 to install, will generate a perpetual growing stream of cash flows. The cash flow at the end of the first year will be $2,500, and cash flows in future years are expected to grow indefinitely at an annual rate of 2%.

If the discount rate for the project is 6%, what is the project NPV?

NPV= ____________________

(please round your final result to 2 decimals if necessary)

What is the internal rate of return (IRR) for the project?

IRR = ______________________ %

(Note: the above answer is in terms of percentage. Please round your final result to 2 decimals if necessary)