Need help on a Finance question related to NPV and IRR?

Need help on a Finance question related to NPV and IRR?



The expected cash flow of a project is as follows :

YEAR ---- CASH FLOW

0 ---- (-100,000)

1 ---- 20,000

2 ---- 30,000

3 ---- 40,000

4 ---- 50,000

5 ---- 30,000

Q. If the Cost of Capital is 12%. Calculate Internal Rate of Return (IRR) and Net Present Value (NPV)?

Step by Step approach to the answer would be appreciated.

Thanks in Advance :)





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