Compute the npv and irr for the project

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The project has the following cash flows (negative numbers represent cash outflows and positive numbers represent cash inflows):

YR 0 = -$50 Million!

YR 1 = $7 Million!

YR 2 = $7 Million!

YR 3 = $7 Million!

YR 4 = $7 Million!

YR 5 = $10 Million!

YR 6 = $10 Million!

YR 7 = $10 Million!

YR 8 = $12 Million!

YR 9 = $12 Million!

YR 10 = $12 Million plus the company stops the projects and sells off the project for an additional $16 Million inflow. Thus, total inflows at year ten equals $28 Million.

Problem 1: The company wishes to earn 12% on this project. Compute the NPV and IRR for the above project.

Reference no: EM132982339

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