The project requires an inditial outlay of $1,000,000. It is expected to generate net cash in-flows of $250,000 for the next five years. At the end of five years, Timmy will retire and the equipment will be sold for $500,000 (terminal value). The zoo uses a required rate of 12% to discount this project.

1A. Calculate the projects NPV:

a. $545,385.09

b. $467,350.25

c. $272,320.25

d. $184,907.48

1B. What is the project's IRR:

a. 55.25%

b. 47.65%

c. 32.05%

d. 29.40%