Question 5 An investment project gives rise to the following cashflows. At the beginning of each of the first three years, $100,000 will be invested in the project. From the beginning of the first year until the end of the 25th year, income will be received continuously. The initial rate of payment of income will begin at $30,000 per annum. The rate of payment is assumed to increase at the beginning of each successive year at a rate of 5% per annum compound. (1) Calculate the net present value of the project at an effective rate of interest of 7% per annum. (ii) Calculate, show all working, the internal rate of return of the project