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 can't 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 be generated by Project Delta. They are: Year Year 1 Cash Flow $2,000,000 $3,750,000 Year 2 Year 3 $3,750,000 $3,750,000 Year 4 The CFO has asked you to compute Project Delta's initial investment using the information currently available to you. He has offered the following suggestions and observations: A project's IRR represents the return the project would gerjerate when its NPU 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 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 cash flows can be discounted using Blue Hamster's 10% WACC. and its NPV is (rounded to the nearest whole Given the data and hints, Project Delta's initial investment is dollar) G @ stv Aa and its NPV is Given the data and hints, Project Delta's initial investment is dollar), (rounded to the nearest whole A project's IRR will if the project's cash inflows decrease, and everything else is unaffected. jects IRR represents the return the project would nenerate when its NPV is zero or the discounted value of its cash inflows equals the discounted value of its cash outflows-when $10,329,788 fare discounted using the project's IRR. The level of risk exhibited by Project Delta is the same jd by the company's average project, which means that Project $10,081,684 Delta's net cash flows can be discounted using Blue Ha ACC. $11,560,041 $9,987,714 and its NPV is (rounded to the nearest whole Given the data and hints, Project Delta's initial investment is dollar). A project's IRR will if the project's cash inflows decrease, and everything else is unaffected. Grade It Now Save & Continue Continue without sa eturn the project would generate when its NPV is zero or the discounted value of its cash inflows its cash outflows-when the cash flows are discounted using $277,535 S IRR. oject Delta is the same as that exhibited by the company's $308,372 ject, which means that Project iscounted using Blue Hamster's 10% WACC. $262,116 $339,209 Ita's initial investment is and its NPV is (rounded to the nearest whole if the project's cash inflows decrease, and everything else is unaffected. decrease Given the data and increase ta's initial investment is and its NPV dollar). stay the same A project's IRR will if the project's cash inflows decrease, and everything