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 $50,000

 A firm undertakes a five-year project that requires an initial capital

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 $50,000 per year for the first two years, $85,000 in the third year, $40,000 in the fourth year, and $20,000 in the fifth year. The project has an after-tax end-of-life salvage value in the fifth year of $5,000. The firm applies a discount rate of 7.95% to projects of this risk level. Click to see additional instructions The net present value of this project is $ Question 8 of 10 1 Points Click to see additional instructions Rounded to two decimal places as a percent, the internal rate of return for this project is %

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