Initial investment in net working capital

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After Charlotte became CEO of XYZ, she had so many ideas that have worked to make the company very large and profitable. Due to uncertainty, her CFO assigns a Risk Adjusted WACC of 15.5% to the current project under consideration with the following initial investments(-) and total projected cash flows(+) in the CFFA summary:

Initial investment in Net Working Capital and Fixed Assets of $1,600,000

Estimated annual Cash Flows From Assets are as follows (note these include Changes in NWC and ATSV):

Year 1: $100,000,
Year 2: $300,000
Year 3: $400,000
Year 4: $500,000
Year 5: $1,000,000.

What are the NPV and IRR of this project?

Reference no: EM133055987

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