Chaquille's K-House, Inc. made an investment in a project with an initial cost of $10,967,975. This investment was for 8 years and had no residual value. The company expects to receive yearly net cash inflows of $2,580,700. Management is requiring a return of 12% on the investment. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. What is the IRR for the project? Is this a good investment? Inital Investment / Annual Net Cash Flow = Annuity PV Factor Present value factor of an annuity of $1 1- (1 + r) Annuity Factor where r = rate, and n n # of periods. 7 Rate Periods Annuity Factor 12% 8 14% 8 16% 8 17% 8 2. Use the rate closest to the calculated Annuity PV factor that creates a positive NPV. Chaquille's K-House, Inc. Net Cash Inflow Annuity PV Factor Present Value PV of annuity Initial Investment NPV of the Project