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

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The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated arid 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 intermal rate of return (IRR) of Project Delta is 13.20, but he can't recall how much Fuzz 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 Delta. They are: The CFO has asked you to compute Project Delta's initial investment using the information currently avaliable to you: He has offered the following suggestions and observations: - A project's 1RR 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 outllows-when the cash flows are discounted using the project's IRR: - The level of risk exhubited by Project Delta is the same as that exhibited by the company's average project, which means that Project Delta's net cash flows can be discounted using Fuzzy Button's 10.00\%s desired rate of return. Given the data and hints, Project Delta's initial investinent is dollar)

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