Question 3 (40 points) The Davis Company is proposing to spend $3,459,200 on a project that has estimated net cash flows of $470,000 for cach of the next 10 years. (NOTE: see the present value tables below.) Question 1: Using a rate of 10%, calculate the Net Present Value of the project. Question 2: Calculate the Internal Rate of Return for the project. Present Value of $1 at Compound Interest Year 2 3 4 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 15% 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 6 7 8 9 10 Present Value of an Annuity of $1 at Compound Interest Year 1 12% 0.893 1.690 2402 3.037 20% 0.833 1.528 2 4 6% 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 5 6 7 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 3.605 15% 0.870 1.626 2.283 2.855 3.353 3.785 4.160 4487 4.772 5.019 4.111 4.564 4.968 5.328 5.650 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 9 10