Question: Raj Durg international is evaluating a project whose expected cash flows are as follows: Year Cashflow (Rs) 0 -1000,000 1 100,000 2 200,000 3 300,000

Raj Durg international is evaluating a project whose expected cash flows

Raj Durg international is evaluating a project whose expected cash flows are as follows: Year Cashflow (Rs) 0 -1000,000 1 100,000 2 200,000 3 300,000 4 600,000 5 300,000 a. Calculate the NPV of the project if discount rate is 12% for year 1 and increases by 1 % every year. b. Determine the IRR of the project 1

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