Question: A company has acquired a new electronic process controller, whose cost is $7,500,000.00. This investment is expected to generate cash flows for the next 6

A company has acquired a new electronic process controller, whose cost is $7,500,000.00. This investment is expected to generate cash flows for the next 6 years as follows:

Year 1

$1'200,000.00 

Year 4

$2'500,000.00 

Year 2

$1'800,000.00 

Year 5

$3'600,000.00 

Year 3

$2'000,000.00 

Year 6

$4'000,000.00 

 The shareholders are asking for a return of 15%.


What would be the NPV and IRR of the project?

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