You are evaluating a business proposal that needs an initial investment of $160,000. The estimated annual returns are as follows:

• Year 1: $22,000
• Year 2: $26,000
• Year 3: $30,000
• Year 4: $34,000
• Year 5: $38,000 Determine the NPV if the discount rate is 7%. Also, compute the IRR for the project.