Growth Enterprises believes its latest project, which will cost $82,000 to install, will generate a perpetual growing stream of cash flows. Cash flow at the end of the first year will be $7,000, and cash flows in future years are expected to grow indefinitely at an annual rate of 5%.
a. If the discount rate for this project is 10%, what is the project NPV? (Do not round intermediate calculations.)
b. What is the project IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places.)