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Oman Aesthetics just purchased a sculpture for $900,000. The firm's experience with large art works indicates that the piece will be worth $7,500,000 in 22
Oman Aesthetics just purchased a sculpture for $900,000. The firm's experience with large art works indicates that the piece will be worth $7,500,000 in 22 years, at which time Oman will sell it. If the firm attributes a 9.4% annual weighted average cost of capital to art investments, what are the sculpture investment's Net Present Value (NPV) and Internal Rate of Return (IRR)? A. $1,004,335.38 NPV; 10.969% IRR B. $328,200.00 NPV; 5.248% IRR C. $6,032,906.76 NPV; 37.879% IRR D. $139,154.64 NPV: 10.117% IRR E. $914,456.08 NPV; 3.937% IRR Reset Selection
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