Making the final capital budgeting decision requires calculation of the NPV and the IRR.

Assume the following for the project under consideration:

initial cash flow: $-$ $$150,000$

operating cash flows: $$50,000$; $$50,000$; $$120,000$

terminal cash flow: $-$ $$10,000$

WACC $=10\%.$

Given this information, answer the following:

$1.$ What is the project's net present value $($NPV$)?$

$2.$ What is the project's internal rate of return $($IRR$)?$

$3.$ Based on the NPV$,$ should the project be accepted? Why or why not?

$4.$ Based on the IRR, should the project be accepted? Why or why not?

$5.$ What is the project's expected return? What is the project's required return?