The staff of Jefferson Medical Services has estimated the following net cash flows for a food services operation that it may open in its outpatient clinic:

Year Expected Net Cash Flow

0 ($100,000)

1 30,000

2 30,000

3 30,000

4 30,000

5 30,000

5 (salvage value) 20,000

What is the projects IRR?

Assuming the project has average risk, what is its NPV?

Now, assume that the operating cash flows in Years 1 through 5 could be as low as $20,000 or as high as $40,000.Furthermore, the salvage value cash flow at the end of Year 5 could be as low as $0 or as high as $30,000.What are the worst case and best case IRRs?The worst case and best NPVs?