Net Present Value and Internal Rate of Return You are analyzing an investment decision in which you have to make an initial investment of 1, 250,000 and you will be generating annual cash flows to the firm of 157, 500 a year from now, and growing thereafter at 3% a year forever. a. Estimate the NPV of this, assuming a cost of capital (discount rate) of 12%. b. Estimate the IRR of this project