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DeBarry Corporation makes an investment of $60,000 that yields the following cash flows: Year Cash Flow 1 $21,000 2 21,000 3 27,000 4 29,000 5

DeBarry Corporation makes an investment of $60,000 that yields the following cash flows: Year Cash Flow 1 $21,000 2 21,000 3 27,000 4 29,000 5 31,000 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? multiple choice Yes or No

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