You are considering to invest in a new atomization project for your company. The project will cost $1 000 000 today and will slowly gain steam in the revenues that it produces. You expect that the first revenue (that happens in one year) will be $50 000. Until (and including) year 5 you expect that the revenues will grow at 30% per year, and after that the growth will slow to 5% per year and continue on that level forever. The relevant interest rate is 10%. a. What is the Net Present Value of this project? Answer in dollar amount with two decimals (i.e. 4523.23). b. What is the Internal Rate of Return of the project? Answer in percent with two decimals (i.e 21.45, not 0.2145)
