Evaluating Capital Investment using Discounted Cash Flows(23 marks)The West Company is considering a capital investment project that requires aninvestment of $37,910. The project is expected to have annual cash inflows of$10,000 occurring at the end of each of the next five years.

a) Determine the internal rate of return for the project.

b) Determine the net present value of the project using discount rates of: 8%,10%, and 12%.

c) From your answers to part b. above, what are your observations about theeffect the discount rate has upon the project's net present value?