Instructions: Kindly answer this urgently. No handwritten answer is needed and also don,t use excel for answers. An investment requires an initial disbursement of € 2,500,000 and the duration of the...

Instructions:

Kindly answer this urgently. No handwritten answer is needed and also don,t use excel for answers.

An investment requires an initial disbursement of € 2,500,000 and the duration of the project is 3 years, in the first of which it generates a cash flow of € 1,500,000, in the second € 3,700,000 and the third € 4,100,000.

1. Calculate the Net Present Value of the investment, knowing that inflation is 3% cumulative annually and that the required profitability in the absence of inflation is 8%.


2. Calculate the actual internal rate of return of the previous investment.