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QUESTION

The capital budgeting director of Uptown

The capital budgeting director of Uptown

Construction Inc. is evaluating a project which costs $250,000, is expected to last for 10 years and produce after-tax cash flows of $48,503 per year. If the firm's cost of capital is 14 percent and its tax rate is 40 percent, what is the project's IRR? Round it to one decimal place in percentage, e.g., 15.4 (for 15.4%).The Seattle Corporation has been presented with an investment opportunity which will yield end-of-year cash flows of $42,000 per year in Years 1 through 4, and $111,000 in Year 5. This investment will cost the firm $150,000 today, and the firm's cost of capital is 13 percent. What is the NPV for this investment? Round it to a whole dollar.

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