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Problem 2 2 - 0 2 An investment costs $ 1 8 , 9 5 5 and will generate cash flow of $ 5 ,

Problem 22-02
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 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 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.
c. Do the NPVs and the IRRs suggest the same courses of action?
The net present value and the internal rate of return suggest ) courses of action.
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