Problem 1. Valuation of a new project. You are evaluating a new project. The project requires an investment of P 40,000 now and is expected to produce the following cash flows: Period 1 2 3 4 Cash Flow P 15,000 20,000 15,000 12,000 Cost of Capital 15% Required: 1. Determine the net present value and internal rate of return? (Review your notes on capital investment analysis)