Table 1

Kraft is considering a new project. Cash flow analysis indicates the following:

Initial cost in Year 0:

Year 0 -212,000

Year 1 $12,000

Year 2 $15,000

Year 3 $25,000

Year 4 $50,000

Year 5 $45,000

Year 6 $25,000

A. Refer to Table 1 above. What is the internal rate of return (IRR) for this project? __________Assume the wacc = 5%. Would you accept or reject the project?_______________Why?_______________________________

B. Refer to Table 1 above. What is the NPV if wacc = 15%? ___________Would you accept or reject the project?______________Why?_____________________

Please show your steps to get this answer: DO NOT USE XCEL.