What is the net present value of the following investment: initial investment 1.3 million lira, profit in the first year 400 thousand lira, second year 500 thousand lira, third year 200 thousand lira, fourth year 200 thousand lira and sale of the investment property for 800 thousand lira. The capital interest is 12%.

a) What is the net present value of the investment?

b)What is the internal rate of return?