Consider the case of Cute Camel Woodcraft Company: Last Tuesday, Cute Camel Woodcraft Company lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Lambda is 13.2%, but he can't recall how much Cute Camel originally invested in the project nor the project's net present value (NPV). However, he found a note that detailed the i annual net cash flows expected to be generated by Project Lambda. They are: Year Cash Flow Year 1 $2,000,000 Year 2 $3,750,000 Year 3 $3,750,000 Year 4 $3,750,000 The CFO has asked you to compute Project Lambda's initial investment using the information currently available to you. He has offered the following suggestions and observations: A project's IRR represents the return the project would generate when its NPV is zero or the discounted value of its cash inflows equals the discounted value of its cash outflows-when the cash flows are discounted using the project's IRR. $ The level of risk exhibited by Project Lambda is the same as that exhibited by the company's average project, which means that Project Lambda's net cash flows can be discounted using Cute Camel's 7% WACC. and its NPV is Given the data and hints, Project Lambda's initial investment is dollar). A project's IRR will If the project's cash inflows increase, and everything else is unaffected. (rounded to the nearest whole A project's IRR represents the return the project would generate when its NPV is zero or the discounted value of its cash inflows equals the discounted value of its cash outflows-when the $9,562,138 discounted using the project's IRR. The level of risk exhibited by Project Lambda is the same Project Lambda's net cash flows can be discounted using $9,948,427 d by the company's average project, which means that WACC. $9,682,126 $11,108,074 and its NPV is Given the data and hints, Project Lambda's initial investment is dollar). A project's IRR will if the project's cash inflows increase, and everything else is unaffected. (rounded to the nearest whole A project's IRR represents the return the project would generate when its NPV is zero or the discounted value of its cash inflows equals the discounted value of its cash outflows-when the cash flows are discounted using to $1,353,951 R. ct, which means that The level of risk exhibited by Project Lambda is the same as that exhibited by the company's Project Lambda's net cash flows can be discounted using Cute Camel's 7% WACC. $1,203,512 $1,429,171 $1,504,390 and its NPV is Given the data and hints, Project Lambda's initial investment is dollar). A project's IRR will if the project's cash inflows increase, and everything else is unaffected. (rounded to the nearest whole . A project's IRR represents the return the project would generate when its NPV is zero or the discounted value of its cash inflows equals the discounted value of its cash outflows-when the cash flows are discounted using the project's IRR. The level of risk exhibited by Project Lambda is the same as that exhibited by the company's average project, which means that Project Lambda's net cash flows can be discounted using Cute Camel's 7% WACC. decrease Given the data and increase hbda's initial investment is and its NPV is dollar). stay the same A project's IRR will if the project's cash inflows increase, and everything else is unaffected. (rounded to the nearest whole