• NPV and EVA A project costs $2.5 million up front and will generate cash flows perpetuity of $240,000. The firm's cost of capital is 9%. a. Calculate the project's NPV. in b. Calculate the annual EVA in a typical year. c. Calculate the overall project EVA and compare to your answer in part a. Internal rate of return For each of the projects shown in the following table, calcu late the internal rate of return (IRR). Then indicate, for each project, the maximum cost of capital that the firm could have and still find the IRR acceptable. Project A Project B Project C Project D Initial investment (CF) $90,000 $490,000 $20,000 $240,000 Year (1) Cash inflows (CF) 1 $20,000 $150,000 $120,000 2 150,000 3 150,000 25,000 30,000 35,000 40,000 $7,500 7,500 7,500 7,500 7,500 80,000 60,000