1A-

An investment costs $26,916 and will generate cash flow of $6,000 annually for six years. The firms cost of capital is 12 percent.

1. What is the investments internal rate of return? Round your answer to the nearest whole number.

   %

2. What is the investments net present value? Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.

   $

1B-

An investment with total costs of $9,000 will generate total revenues of $10,000 for one year. Use a minus sign to enter negative values, if any. Round your answers to the nearest dollar.

If funds cost 18 percent, the NPV is $ .

Would your answers be different if the cost of capital is 9 percent?

If funds cost 9 percent, the NPV is $ .