Check My Wor eBook Problem 22-02 An investment costs $26,537 and will generate cash flow of $7,000 annually for five years. The firm's cost of capital is 14 percent. Use Appendix D to answer the questions. a. What is the investment's internal rate of return? Round your answer to the nearest whole number Based on the internal rate of return, should the firm make the investment? The investment -Selectmade. b. What is the investment's net present value? Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar. Based on the net present value, should the firm make the investment? made. . Do the present value and the internal rate of return suggest e same courses of action? The net present value and the intemal rate of return suggest Cselect:courses of action. Interest Factors for the Present Value of an Annuity of One Dollar r) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 2 1.970 1.942 1.913 1.886 1.859 1.833 1808 1.783 1.759 1.736 1.690 1.647 1.605 1566 1.528 1.457 1.392 1.332 1.276 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1.981 1.868 1.766 1.674 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2991 2.745 2.532 2.345 2.181 6 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.7475.535 5.335 4.968 4.639 4.344 4.078 3837 3.421 3.076 2.786 2.540 9 8.566 8.162 7786 7.435 7.108 6.802 6.515 6.247 5985 5.759 5.328 4946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 0 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 12 11.255 10.575 9954 9.385 8.863 8.384 7943 7536 7161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 3 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.3424910 4533 3.912 3.427 3.040 2.727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.7 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6.1425.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 6974 6.265 5.669 5162 4.730 4.003 3.503 3.088 2.758 17 15.562 14292 13.166 12.166 11.274 10.477 9.763 9,122 8.544 8.002 7.120 6.373 5.749 5.222 4.775 4.059 3.518 3.097 2.763 18 16.398 14 992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 19 17.226 15 678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3.539 3.109 2.770 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 0 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3569 3.124