Problem $22-01$

An investment costs $$18,955$ and will generate cash flow of $$5,000$ annually for five years. The firm's cost of capital is $14$ percent. Use Appendix $D$ to answer the questions.

a$.$ What is the investment's internal rate of return $($IRR$)?$ Round your answer to the nearest whole number.

$\%$

Based on the IRR, should the firm make the investment?

The investment $$ made.

b$.$ What is the investment's net present value $($NPV$)?$ Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.

$ $$

Based on the NPV$,$ should the firm make the investment?

The investment $$ made.