What the IRR and NPV of the venture

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Question - Sheldon Cooper, PhD, came up with a brilliant idea for a startup venture. He approached his friend Rajesh (apparently wealthy) for the possibility of getting funding. Before Sheldon started rambling about the idea, Rajesh made clear that his return requirement is 15%. For an investment of $244,600, he expects the following cash flows over the next three years:

Year 1: $94,260

Year 2: $112,750

Year 3: $127,940

Required - What the IRR and NPV of the venture?

Reference no: EM133053813

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