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Please show detailed working. Thanks! A project requires an initial, up-front (at t=0) capital expenditure of $11, 820. It then generates constant annual cash inflows

image text in transcribedPlease show detailed working. Thanks!

A project requires an initial, up-front (at t=0) capital expenditure of $11, 820. It then generates constant annual cash inflows for the next 21 years of $800 with the first payment due at t=1. After this period, payments grow at a rate of 2.0% annually and are paid in perpetuity. a. At an annual discount rate of 12.0%, the net present value of this project is $ (Round your answer to the nearest dollar) b. Given this, the IRR of the project is less than 12.0%. (Select from the drop-down menu.) (No answer given)

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