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Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed.

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Last Tuesday, Green Caterpillar Garden Supplies 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 Gamma is 13.2%, but he can't recall how much Green Caterpillar originally invested in the project nor the project's net present value (NPV). However, he found a note that detalled the annual net cash flows expected to be generated by Project Gamma. They are: The CFO has asked you to compute Profect Gamma's initial investment using the information curtently avallable fo you. He has offered the followin 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 outfows-when the cash flows are discounted using the project's IRR. - The level of risk exhibited by Project Gamma is the same as that exhibited by the company's averoge project, which means that. Project Gamma's net cash flows can be discounted using Green Caternillar's 9% WACC. - A projectis IRR represents the return the project would generate when its Npy i5 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 lRR. - The level of risk exhibited by Project Gamma is the same as that exhibited by the company's average project, which means that Project Gamma's net cash flows can be discounted using Green Caterpillar's 9% WACC. Given the-dato and hints, Project Gamma's in idal investrnent is , and its NPY is (rounded to the nearest whole dollar) A project's irre will If the project's cash inflows decrease, and everything else is unarfected

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