problem1
What is the net present value of a project that requires a net initial investment of $76,000, and produces net cash flows of $22,000 per year for the next 6 years? Assume the cost of capital is 12 percent.
problem 2
What is the internal rate of return for a project that has a net investment of $20,600 at the end of year one, and a single net cash flow of $45,750 in 5 years (end of year 6)?