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You have a project that requires an investment of $ 5,000,000. It will generate an annual net cash flow of $ 550,000 for 85 years.

You have a project that requires an investment of $ 5,000,000. It will generate an annual net cash flow of $ 550,000 for 85 years. If your cost on money is 12%, then, which of the following statement is true:

Select one:

a. the NPV cannot be calculated because the project life is too long

b. the IRR cannot be determined because the project life is too long

c. only the NPV can be determined with the given information in the problem

d. only the IRR can be determined with the given information in the problem

e. both the IRR and the NPV can be determined with the given information

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