Luft Watch Company is considering an investment of $48,000, which produces the following inflows:

Year	Cash Flow
1		$21,000
2		20,000
3		17,000

You are going to use the NPV profile to approximate the value for the IRR. Please follow these steps:

a. Determine the NPV of the project based on a zero discount rate.

NPV $

b. Determine the NPV of the project based on a 9 percent discount rate.

NPV $

c. Determine the NPV of the project based on a 12 percent discount rate.

NPV $

d. Draw a NPV profile for the investment. Observe the discount rate at which the NPV is zero. This is an approximation of the IRR on the project.