1. Fairfax Pizza is evaluating a project that would cost 6,453 dollars today. The project is expected to have the following other cash flows: 2,254 dollars in 1 year, 2,842 dollars in 2 years, and 3,864 dollars in 4 years. The NPV of the project is -56. What is the internal rate of return for the project?
2. Fairfax Paint is evaluating a project that would cost 6,728 dollars today. The project is expected to have the following other cash flows: 2,220 dollars in 1 year, 2,506 dollars in 3 years, and 3,169 dollars in 4 years. The internal rate of return for the project is 5.89 percent and the cost of capital for the project is 5.22 percent. What is the net present value of the project?