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DeBarry Corporation makes an investment of $56,000 that yields the following cash flows: Year 1 2. 3 4 5 Cash Flow $12,000 12,000 18,000 20,000

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DeBarry Corporation makes an investment of $56,000 that yields the following cash flows: Year 1 2. 3 4 5 Cash Flow $12,000 12,000 18,000 20,000 22,000 a. What is the present value with a 7 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? O Yes ONo

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