Last Tuesday, Cold Goose Metal works inc. lost a portion of its planning and financial data when its server and its backup server crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Zeta is 13.8%, 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 contained the annual net cash flows expected to be generated by Project Zeta. They are:

Year	Cash Flow
Year 1	$2,400,000
Year 2	$4,500,000
Year 3	$4,500,000
Year 4	$4,500,000

The CFO has asked you to compute project zeta'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 generate when its NPV is zero or the discounted value of its cash inflows equals the discounted value of its cash outflows - when the cash outflows are discounted using the project's IRR.

The level of risk exhibited by Project zeta is the same as that exhibit by the company's average project, which means that Project zeta's net cash flows can be discounted using Cold Goose's 8% WACC.

1.Given the data and hints, Project zeta's initial investment is ____________

(a. $13,165,646,

b. $11,474,452,

c. $11,799,824,

d. $11,320,304) and its NPV is _____________

(a. $1,557,831,

b. $1,639,822,

c. $1,885,795,

d. $11,393,849) rounded to the nearest whole dollar)

2.A projects IRR will __________

(a. increase,

b. decrease,

c. stay the same) if the project's cash inflows decrease, and everything else is unaffected.