Andrew is hopeful that his new bike-riding program will be a profitable venture for investors. If he is asking for $10,000 for a business opportunity that pays out $3,950 every year for the next 3 years, should investors provide the money if they have a weighted average cost of capital of 12.0%? In other words, find the NPV, IRR and indicate whether you would accept or reject this project. (4 points)

NPV =

IRR =

Accept or Reject?

In one or two sentences, explain why you made your (reject or accept) decision?