1) Compute the NPV of a project with the following information.
The IRR is 9%.
The project life is 3 years.
The initial cost is $19,000.
In years 1 and 2 the cash inflows are $4,500 and $5,500, respectively.
Cash flow in year 3 is missing.
WACC is 12%.
2) Your required rate of return is 10 percent. If you invest $3,000 today you will have the following cash inflows: 2000 at t=1, 500 at t=2, 2000 at t=3, and 2000 at t=4. Compute the Discounted Payback Period of the project.
Please show steps to both questions.