Question: 1) You are evaluating a project with the following expected cash flows: an initial investment of $9 million, followed by cash flows of $3, $10
1) You are evaluating a project with the following expected cash flows: an initial investment of $9 million, followed by cash flows of $3, $10 and $23 million in years 1, 2 and 3, respectively. If the company's discount rate is 11%, what is this projects NPV?
2)A new project proposal involves an initial investment of $10 million, followed by cash flows of 2, 5 and 7 million. What is the IRR for this project?
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