1. Deep Waters, Inc. is using the internal rate of return (IRR) when evaluating projects. Find the IRR for the company’s project. The initial outlay for the project is $540,900. The project will produce the following after-tax cash inflows of
Year1: 250,400
Year 2: 154,000
Year 3: 126,700
Year 4: 130,200 Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)
You should use Excel or financial calculator. Your Answer:
2. Find the net present value (NPV) for the following series of future cash flows, assuming the company’s cost of capital is 6.19 percent. The initial outlay is $411,106.
Year 1: 128,458
Year 2: 178,459
Year 3: 176,640
Year 4: 123,527
Year 5: 146,745
Round the answer to two decimal places.