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Last Tucsday, Cold Goose Metal Works inc. lost a portion of its planning and finandal data when both its main and its backup servers crashed.

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Last Tucsday, Cold Goose Metal Works inc. lost a portion of its planning and finandal data when both its main and its backup servers crashed. The company's CFO remembers that the intemal rate of return (IRR) 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 detalied the annual net cash flows expected to be generated by Project Omicron. They are: The CFO has asked you to compute Project Omicron's initial investment using the information currently avallable to you, He has offered the followin suggestions and observations: - A project' IRA 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 outfows-when the cash flows are discounted using the project's tRR. - The level of risk exhibited by Profect Omicron is the same as that exhibited by the company's average project, which means that Project Omicron's net cash fows can be discounted using Cold Coose's 9\% WACC. Last Tucsday, Cold Goose Metal Works inc. lost a portion of its planning and finandal data when both its main and its backup servers crashed. The company's CFO remembers that the intemal rate of return (IRR) 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 detalied the annual net cash flows expected to be generated by Project Omicron. They are: The CFO has asked you to compute Project Omicron's initial investment using the information currently avallable to you, He has offered the followin suggestions and observations: - A project' IRA 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 outfows-when the cash flows are discounted using the project's tRR. - The level of risk exhibited by Profect Omicron is the same as that exhibited by the company's average project, which means that Project Omicron's net cash fows can be discounted using Cold Coose's 9\% WACC

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