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help please!! thank you 3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return (IPR) methods of investment analysis

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3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return (IPR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc.: Last Tuesday, Cold Goose Metal Works Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IFR) of Project Omicron is 13.2%, but he can't recall how much Cold Goose originally invested in the project nor the project's net present value (NPV). However, he found a note that detailed the annual net cash flows expected to be generated by Project Omicion. They are: The Cro has asked you to compute Project Omicron's initial investment using the information currently available to vou, He has offered the following supoestions and observations: Ch 11: Assignment - The Basics of Capital Budgeting The CFO has asked you to compute Project Omicron's initial investment using the information currently avallable to you. He has offered the following suggestions and observations: - A project's TRR represents the return the project would generate when its NPV is zero or the discounted value of its cash inflows equals the discounted value of its cash outflows - when the cash flows are discounted using the project's tRR. - The level of risk exhibited by Project Omicron is the same as that exhibited by the company's average project, which means that Project Omicron's net cash flows can be discounted using cold Goose's 9% WACC. Given the data and hints, Prolect Omicron's initial investment is , and its NPV is Crounded to the nearest whole dollar). A project's IRR will if the project's cash inflows increase, and everything else is unaffected

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