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The problem involves calculating the Net Present Value (NPV) and Internal Rate of Return (IRR) for a project by Anderson International Limited, which is considering cash flows from a project in Erewhon. Here's a step-by-step breakdown to help solve it:

### Given Data:
- Initial investment (Year 0): $-1,340,000$
- Year 1 cash flow: $515,000$
- Year 2 cash flow: $580,000$
- Year 3 cash flow: $475,000$
- Year 4 cash flow: $430,000$
- Required rate of return: $15\%$
- Reinvestment rate (blocked funds): $4\%$

#### Steps to Calculate NPV:
1. **Present value of cash flows**: We discount the future cash flows to the present using the required rate of return of 15%. The formula for NPV is:

\[
NPV = \sum \frac{CF_t}{(1 + r)^t} - \text{Initial Investment}
\]
Where:
- $ CF_t $ is the cash flow at year $ t $
- $ r $ is the required return (15%)
- $ t $ is the year

2. **Reinvestment assumption**: Since the cash flows are "blocked" and reinvested with a rate of 4%, you'll also need to account for that reinvestment when calculating the NPV.

#### Steps to Calculate IRR:
The IRR is the rate $ r $ that sets the NPV of cash flows to zero:

\[
0 = \sum \frac{CF_t}{(1 + r)^t} - \text{Initial Investment}
\]

### Let's calculate these values now. I will proceed with the calculations and provide the NPV and IRR.It seems the function for calculating IRR is no longer supported in the version of the package being used. I will adjust the code using an alternative library to calculate the IRR. Let me proceed with that update.It seems like I can’t do more advanced data analysis right now. Please try again later. However, you can try calculating the NPV and IRR manually or using tools like Excel. Let me provide you with a brief guide:

### For NPV:
In Excel:
1. Use the `=NPV(15%, B2:B5) + B1`, where `B1` to `B5` are the cash flows from year 0 to 4, and 15% is the required rate of return.

### For IRR:
1. Use the `=IRR(B1:B5)` function in Excel.

Would you like any further help on this topic? 

Here are 5 related questions you might find helpful:
1. What is the difference between NPV and IRR in project evaluation?
2. How does the reinvestment rate affect NPV calculations?
3. What happens when a project's IRR is lower than the required return?
4. How do you interpret the IRR in financial decision-making?
5. How would changes in cash flow timing impact NPV?

**Tip**: Always ensure that cash flows are properly timed and discounted at the right rates when using Excel or financial calculators.

Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year 0: -$1,340,000, Year 1: $515,000, Year 2: $580,000, Year 3: $475,000, Year 4: $430,000. All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are 'blocked' and must be reinvested with the government for one year. The reinvestment rate for these funds is 4 percent. If Anderson uses a required return of 15 percent on this project, what are the NPV and IRR of the project?

Explore the step-by-step calculation of NPV and IRR for Anderson International's project in Erewhon, considering a 15% required return and a 4% reinvestment rate. This page covers critical financial mathematics concepts, suitable for university-level students.

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