Q1. A new company started a project with an initial investment of $500,000 (in year 0) followed by other yearly cash outflows to meet periodic expenses and cash inflows from revenue generated as given in the table below. All cashflows are assumed to have occurred at the end of each year. Please answer the followings when the cost of capital, J. = 0.05: = vii. 4 marks. If the company likes the project to be at least break-even, i.e. it plans to make the PV of all cash outflows equal to the PV of all cash inflows by increasing the revenue stream received every year, i.e. by increasing $175,000 to a new $ amount that is same every year from year 1 to 5. a. What should be this new $ amount that will make the NPV = 0? b. What will be the IRR for this break-even project? End of Year Outflow Inflow 0 $500,000 0 1 0 $175,000 2 $150,000 $175,000 3 0 $175,000 4 $125,000 $175,000 5 0 $175,000