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Last Tuesday, Blue Hamster Manufacturing Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The

Last Tuesday, Blue Hamster Manufacturing 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 (IRR) of project Delta is 11.3%, but he cant recall how much Blue Hamster 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 generated by Project Delta. They are :
Year Cash Flow
Year1. $1,800,000
Year 2. $3,375,000
Year 3. $3,375,000
Year 4. $3,375,000
The CFO has asked you to compute Project Delta's initial investment using the information currently available to you. He has offered the following information.
A project's IRR represents the return the project would generate when its NPV is zero or dicounted value of its cash inflows equal the discounted value of its cash outflows - when the cash flows are discounted using the project's IRR
The level of risk exhibited by project Delta is the same as that exhibited by the company's average project, which means that Project Delta's net flows can be discounted using Blue Hamster's 9% WACC
Given the data and hints, Project Delta's initial investment is ___________, and its NPV is ______ (rounded 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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