Q.7 It is estimated that an investment in a project will cause the following cash flows in .

Year Cash flow

1 (60 000)

2 (10 000)

3 15 000

4 20 000

5 20 000

6 20 000

1. Calculate the NPV corresponding to two discount rates of 6% and 9%.
2. Estimate the IRR for the project. [ 20 marks]