Net Present Value (NPV) and Internal Rate of Return:

Year	Outflow	Inflow
0	$1,250,000
1		$0
2		$50,000
3		$150,000
4		$175,000
5		$200,000
6		$250,000
7		$500,000
8		$500,000

Using a discount rate of 6%, what is the net present value of this project? ____________

Using a discount rate of 6.5%, what is the net present value of this project? ____________

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

Why did the 6.5% discount rate end up with the result that it did? ______________________

___________________________________________________________________________