(Ignore income taxes in this problem.) Private Company is considering a new project and has gathered the following data: Working capital required Annual net cash inflows Life of the project Required rate of return $80,000 $12,000 12 years 14% Working capital will be recovered at the end of the project's life. The net present value of this investment is: $(28,656). $(12,080). $4,560. $15,936. (Ignore income taxes in this problem.) Butterfly Company is considering the purchase of a new piece of equipment and has gathered the following data: Investment in equipment Annual cash inflows Salvage value of equipment Life of the investment Required rate of return $192,720 $30,000 $0 13 years 10% The company uses straight-line depreciation on all equipment. The internal rate of return of this investment is closest to: 7.9%. 12.0%. 15.6%. 6.4%