Question: A project requires $100 K investment now. It will return 50K at the end of first year and $70K for the second year. Also, it

A project requires $100 K investment now. It will return 50K at the end of first year and $70K for the second year. Also, it has a maintenance cost of 10K at the end of first year.

  1. {30 Points} Draw the cash-flow diagram.
  2. {30 Points} Calculate NPV assuming i=5%.
  3. {40 Points} Calculate IRR.

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