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Consider an asset expected to generate the following finite set of annual cash flows. As shown on the timeline, the cost of the asset is

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Consider an asset expected to generate the following finite set of annual cash flows. As shown on the timeline, the cost of the asset is $11,500. Assume a required rate of retum of 10% per year, compounded annually. A. Calculate the net present value (NPV) of this set of cash flows. B. Calculate the intemal rate of return (IRR) of the set of cash flows. C. Based on the NPV, should the company invest in this asset? Why or why not? D. Based on the IRR, should the company invest in this asset? Why or why not? 2. Consider the following set of semiannual cash flows to be generated by an asset under consideration for investment. The asset will cost $8000 to purchase. Assume a required rate of retum (wencus wa.c. per year, compounded semiannually. A. Calculate the net present value (NPV) of this set of cash flows. B. Calculate the intemal rate of retum (IRR) of the set of cash flows. Be sure to adjust to annual terms. C. Based on the NPV, should the company invest in this asset? Why or why not? D. Based on the IRR, should the company invest in this asset? Why or why not

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