You are analyzing a project for the development of a new product in the Motorcycle Division of your company. The project will require an initial investment of -$125,000, and cash flows are estimated to be: year 1 @ $22,000, year 2 @ $88,000, year 3 @ $150,000. Your Division WACC is 13.5% and your tax rate is 25%. What is the projects NPV?

a) $25,720

b) $65,284

c) $101,455

d) $58,987

Based on the information in question 39 above, what is the IRR of the project?

a) 35.3%

b) 28.7%

c) 18.9%

d) 10.6%