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DeBarry Corporation makes an investment of $55.000 that yields the following cash flows: Year 2 3 4 5 Cash Flow $13,000 13,000 19,000 21,000 23,000

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DeBarry Corporation makes an investment of $55.000 that yields the following cash flows: Year 2 3 4 5 Cash Flow $13,000 13,000 19,000 21,000 23,000 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? OO Yes No

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