Question: A firm undertakes a five-year project that requires on initial copital Investment of $120.000. The project is then expected to provide cash now of $15.000
A firm undertakes a five-year project that requires on initial copital Investment of $120.000. The project is then expected to provide cash now of $15.000 per year for the first two years. $60.000 in the third and fourth years, and $10,000 in the fifth year. The project has an end -of-life salvage value of $3.500.
If the discount rate applied to these cash flows is a 9.50 percent, to the nearest dollar, the net present value of this project is $_________
Rounded to two decimal places as a percent, the internal rate of return of the project is ____%
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