Tom is analyzing an investment that requires $19,000 today and it produces the first cash flow of $670 in two years (year 2). Cash flow is expected to grow at 2.5% a year after year 2, until eternity....

Tom is analyzing an investment that requires $19,000 today and it produces the first cash flow of $670 in two years (year 2). Cash flow is expected to grow at 2.5% a year after year 2, until eternity.

The discount rate is 7%.

Calculate the NPV of this investment?

NPV = ______________

Calculate the




rate of return of this investment?

Rate of return = _________________

Show all calculations.