Calculate the NPV and IRR for this project

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Reference no: EM131848864

Your project organization has to decide whether or not to invest in a project opportunity. The following information is available to you.

Initial cash outflow = $200,000 in the current year (year 0), and $50,000 in the next year

Cash inflows = $75,000 in year 1, $100,000 in year 2, $150,000 in year 3, and $25,000 in year 4

Required rate of return = 15%

Inflation rate = 4%

Calculate the NPV for this project.

Calculate the IRR for this project.

Please show the formule on how did you got the answer.

Reference no: EM131848864

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