Question: A project is being considered which has an initial cost of 210m and produces cash flows of 52m over each of the following seven years.

A project is being considered which has an initial cost of 210m and produces cash flows of 52m over each of the following seven years. The firm has a cost of capital for this type of project of 11%.

Determine (i) the Internal Rate of Return (IRR) of the project (to the nearest 0.01%) and (ii) the net present value (NPV) of the project (to the nearest .01million).

(i) 16.00% and (ii) 28.06million

(i) 14.73% and (ii) 28.06million

(i) 14.73% and (ii) 35.03million

(i) 16.00% and (ii) 35.03million

None of the above

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