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Question 2 ( 2 0 pts ) NPV and IRR: Arch International is evaluating a project in Venezuela. The project will generate the following cash

Question 2(20 pts) NPV and IRR: Arch International is evaluating a project in
Venezuela. The project will generate the following cash flows:
In an attempt to improve its economy, Venezuela's government has declared that
all cash flows created by a foreign company are "blocked" and must be reinvested
with the government for 1 year. The reinvestment rate for these funds is 4.2%. If
Arch uses an 11 percent required return on this project, what are the NPV and the
IRR of this project? (Note: you have to bring cash back to time zero from the time
they are available and with the exact amounts).
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