Internal rate of return-shane industries


Question 1.  Shane industries is considering a project which has the following cash flows:

Year Cash flow
0    ($5,000)
1        ?
2     $2,000
3     $3,000
4     $3,000
5

The project has a payback period of 2.5 years. The firm's discount rate is 10%. What are the project's Net Present Value (NPV) and Internal Rate of Return (IRR)?

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