Question: You are evaluating a business proposal that needs an initial investment of $160,000. The estimated annual returns are as follows: Year 1: $22,000 Year 2:

You are evaluating a business proposal that needs an initial investment of $160,000. The estimated annual returns are as follows:

  • Year 1: $22,000
  • Year 2: $26,000
  • Year 3: $30,000
  • Year 4: $34,000
  • Year 5: $38,000 Determine the NPV if the discount rate is 7%. Also, compute the IRR for the project.

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