What is the project npv and project irr

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Revenues generated by a new fad product are forecast as follows:

Year. Revenues

1. $60,000

2. 45,000

3. 30,000

4 10,000

Thereafter 0

Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $60,000 in plant and equipment.

Problem 1: If the opportunity cost of capital is 15%, what is the project's NPV? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Problem 2: What is project IRR?

Reference no: EM132762549

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