Clark Coop just spent $250,000 on a project generating the following cash flows: $75,000 in year 1, $50,000 in years 2 – 4, and $140,000 in year 5. Use a discount rate of 8% and compute the project NPV. Compute the IRR for the project.
Now assume that Clark Coop projects the cash flows will occur in the reverse: $140,000 in year 1, $50,000 in years 2-4, and $75,000 in year 5. Use a discount rate of 8% and compute the project NPV. Compute the IRR for the project as well. show work
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