Answer:
A)
year cash inflows cash outflows net cash flows
0 0 -900,000 -900,000
1 790,000 -486,000 304,000
2 1,430,000 -806,000 624,000
3 786,500 -484,250 302,250
4 432,575 -307,288 125,287
5 68,908 -125,454 -56,546
B)
NPV 0% discount rate = $398,991
NPV 10% discount rate = $169,613
NPV 20% discount rate = -$725
NPV 30% discount rate = -$130,712
NPV 40% discount rate = -$232,241
C)
NPV 10.3% discount rate = $163,760
D)
almost 20%, since the IRR is the discount rate where NPV = $0
Actual IRR = 19.95%