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Problem 22-09 Management of a firm with o cost of copitat of 12 persent is considering a $127,000 investment woth annual cash flow of $54,700

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Problem 22-09 Management of a firm with o cost of copitat of 12 persent is considering a $127,000 investment woth annual cash flow of $54,700 for three vears. Use Appendix A and Apgendix D to answer the questions. a. What are the investment's net present value and internal rote of return? Use a minus sign to enter a negative value, If any. Round your answers for the net present value to the nearest dollar and for the internal rate of return to the nearest whole number. NPVis 5 IRR: is b. The internal rate of retum assumes that each cash fow is reinvested at the internal rate of return. If that reinvestment rate is achieved, what is the total value of the cash flows at the end of the third year? Use the rounded internal rate of return from part a. Round your answer to the nearest dollar. 5 c. The net present value techinique assumes that each cash flow is reinvested at the firm's cost of capital. What would be the total value of the cash flows at the end of the third year, if the funds are reinvested at the firm's cost of capital? Round your answer to the nearest dollar

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