DeBarry Corporation makes an investment of $45,000 that yields the following cash flows:

Year	Cash Flow
1	$10,000
2	10,000
3	16,000
4	18,000
5	20,000

a. What is the present value with a 8 percent discount rate (cost of capital)? (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answer to the nearest whole dollar.)

Net present value $

b. What is the IRR? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

IRR %

c. Would you make the same decision under both parts a and b?

multiple choice

• Yes

• No