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Consider the case of Cold Goose Metal Works Inc. Last Tuesday, Cold Goose Metal Works Inc. lost a portion of its planning and financial data

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Consider the case of Cold Goose Metal Works Inc. Last Tuesday, Cold Goose Metal Works Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's Cro remember that the internal rate of return (TRR) of Project Omicron is 13.8%, but he can't recall how much Cold Goose originally invested in the project nor the project's net present value (NPV). However, he found a note that detailed the annual net cash flows expected to be generated by Project Omicron. They are Year Yeart Year 2 Cash Flow $2.400.000 $4.500.000 $4.500.000 54,500,000 Year Year 4 The CFO has asked you to computer Project Omicron's initial investment using the information currently available to you. He has offered the following suggestions and observations A project's represents the return the project would generate when it NPV bere or the discounted value of its cash info equals the discounted value of its cash outflows when the cash flows are discounted using the project's R. The level of risk ched by Project Omicron is the same as that exhibited by the company's average project which means that Project Omicron's Cash How can be discounted using Cold Goose' 104 WACC. and its crounded to the nearest bole Give the data and hinterject Omicron vestments dollar), Ajects the project's cash in decreased wything halfected

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