The net present value $($NPV$)$ and internal rate of return $($IRR$)$ methods of investment analysis are interrelated and are sometimes used together to

make capital budgeting decisions.

Fuzzy Button Clothing Company lost a portion of its planning and financial data when its server and its backup server crashed. The company's CFO

remembers that the internal rate of return $($IRR$)$ of Project Gamma is $14\mathrm{.}60\%,$ but he can't recall how much Fuzzy Button originally invested in the

project nor the project's net present value $($NPV$).$ However, he found a note that contained the annual net cash flows expected to be generated by

Project Gamma. They are:

The CFO has asked you to compute Project Gamma's initial investment using the information currently available to you. He has offered the following

suggestions and observations:

A project's IRR represents the return the project would generate when its NPV is zero or the discounted value of its cash inflows

equals the discounted value of its cash outflows$-$when the cash flows are discounted using the project's IRR.

The level of risk exhibited by Project Gamma is the same as that exhibited by the company's average project, which means that

Project Gamma's net cash flows can be discounted using Fuzzy Button's $7\mathrm{.}00\%$ desired rate of return.

Given the data and hints, Project Gamma's initial investment is

$,,$ and its NPV is

$($both rounded to the nearest

whole dollar$).$