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Q1: If I invest 1000 in a project today, I will get a cash return of 100 at the end of next year and every
Q1: If I invest 1000 in a project today, I will get a cash return of 100 at the end of next year and every following year, in perpetuity. What is the Net Present Value of the project if I have a 5% discount rate?
Q2: If I invest 551 in a project today, I will get a cash return of 23 at the end of next year and every following year, in perpetuity. What is the Internal Rate of Return of the project? State your answer in percentage points.
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