Turner Video will invest $60,500 in a project. The firm's discount rate (cost of capital) is 13 percent. The investment will provide the following inflows: Use Appendix A.

1	$16,000
2	18,000
3	22,000
4	26,000
5	30,000

The IRR is 12 percent.

a. If reinvestment is assumed at the cost of capital rate used by the NPV method, what will be the total value of the inflows after five years? (Assume the inflows come at the end of each year.) (Round intermediate and final answer to the nearest whole dollar.)

Total value of inflows $

b. If the reinvestment is assumed at the IRR, what will be the total value of the inflows after five years? (Round intermediate and final answer to the nearest whole dollar.)

Total value of inflows $

c. Which investment assumption is better?

multiple choice

Reinvestment assumption of NPV

Reinvestment assumption of IRR