Fairfax Pizza is evaluating a project that would cost 6,985 dollars today. The project is expected to have the following other cash flows: 2,270 dollars in 1 year, 2,215 dollars in 2 years, and 4,187 dollars in 4 years. The NPV of the project is 87. What is the internal rate of return for the project? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
Fairfax Paint is evaluating a project that would cost 8,257 dollars today. The project is expected to have the following other cash flows: 2,494 dollars in 1 year, 2,553 dollars in 3 years, and 5,241 dollars in 4 years. The internal rate of return for the project is 7.69 percent and the cost of capital for the project is 7.92 percent. What is the net present value of the project?