suppose a company is considering an investment with an initial cost of $100m.

Our forecasts suggest that the project will produce operating cash flow of $15m per year and free cash flow of $10m per year for the next 15 years. Weve been asked to evaluate it using a required return of 5%.

part 1: calculate the NPV of this project and interpret the results. what conculsions can you draw from this estimate?

Part 2: calculate the internal rate of return of this project and interpret your result. what conculsions can you draw from this estimate?