Growth Enterprises believes its latest project, which will cost $50,000 to install, will generate a perpetual growing stream of cash flows. The cash flow at the end of the first year will be $7,000, and cash flows in future years are expected to grow indefinitely at an annual rate of 4%.

If the discount rate for the project is 12%, what is the project NPV?

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