Project B

initial cost $$100,000$

year $1-$$$30,000$

year $2-$$$25,000$

year $3-$$$20,000$

year $4-$$$20,000$

year $5-$$$20,000$

year $6-$$$15,000$

year $7-$$$10,000$

The equipment will have no valueatt the end of it's $7$year life.

a$)$calculate the net present value for the project using $8\%$ and $12\%$ discount factor.

b$)$calculate the internal rate of return for the project