Company ABC has an investment opportunity and requires an outlay of $x now. It promises to return a cash flow of $ 10,000 next year, the market equilibrium rate is 5%.

A) calculate the largest acceptable $x for you to invest in this project. illustrate in a graph.

b) You have to have an internal rate of return of 13% and you have accepted this project. Draw on the same graph as to illustrate the IRR of this project. (the IRR of a project is the discount rate at which NPV is zero. )

c) Find the NPV of the project (and draw it on graph. )