Investment Opportunity: Purchase Price: Useful Life: Cost of Capital: Zimboozy $17,500 5 years 8.00% YEAR Cash in PV $ Data: 5,000 8,000 13,000 7,000 8,000 Cash out $17,500 2,500 4,000 5,200 4,800 3,000 Net Flow (17,500) 2,500 4,000 7,800 2,200 5,000 4,000 Summary of annual cash flows YEAR Cash in NPV $ Cash out $17,500 2,500 4,000 5,200 4,800 3,000 5,000 8,000 13,000 7,000 8,000 Net Flow (17,500) 2,500 4,000 7,800 2,200 5,000 4,000 IRR approach to capital budgeting Input the assumed cost of capital YEAR PV Instructions: Analyze this investment opportunity and make a recommendation using the following 2 methods: CASH IN CASH OUT NET FLOW 17,500 (17,500) 5,000 2,500 2,500 8,000 4,000 4,000 13,000 5,200 7,800 7,000 4,800 2,200 8,000 3,000 5,000 4,000 * NPV * IRR NPV (must be 0)