Harrison Ltd is contemplating a project with these projections:

• Initial amount invested is R1,400,000 and an expected residual value of R120,000.

Year	Cashflows	Discount factor
Year 1	R170,000	0.909
Year 2	R190,000	0.826
Year 3	R200,000	0.751
Year 4	R150,000	0.683
Year 5	R160,000	0.621

Cost of capital is 8%. Depreciation is R100,000 per year. Tax rate is 27%.

Required:

1. Calculate each of the following:
   • 1.8.1 Net Present Value (5)

1.8.2 Internal Rate of Return (5)