Question: A firm undertakes a five-year project that requires an initial capital investment of $200,000. The project is then expected to provide cash flow of $40,000

A firm undertakes a five-year project that requires an initial capital investment of $200,000. The project is then expected to provide cash flow of $40,000 per year for the first two years, $100,000 in the third year, $50,000 in the fourth year, and $30,000 in the fifth year. The project has an after-tax end-of-life salvage value in the fifth year of -$10,000. The firm applies a discount rate of 8.25% to projects of this risk level.

What follows is a numeric fill in the blank question with 1 blanks.

The net present value of this project is $ __________

What follows is a numeric fill in the blank question with 1 blanks.

Rounded to two decimal places as a percent, the internal rate of return for this project is ___________%.

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