What is the irr of the project

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1. Middlefield Motors is evaluating a project that would require an initial investment of 68,882 dollars today. The project is expected to produce annual cash flows of 8,465 dollars each year forever with the first annual cash flow expected in 1 year. The NPV of the project is -410 dollars. What is the IRR of the project? 

2. Fairfax Paint is evaluating a project that would cost 7,406 dollars today. The project is expected to have the following other cash flows: 2,295 dollars in 1 year, 2,849 dollars in 2 years, and 3,104 dollars in 4 years. The internal rate of return for the project is 4.51 percent and the cost of capital for the project is 6.52 percent. What is the net present value of the project?

Reference no: EM132014417

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