Turner Video will invest $$88,500$ in a project. The firm's discount rate $($cost of capital$)$ is $10$ percent. The investment will provide the following inflows: Use Appendix A$.$

$1$ $$30,000$

$232,000$

$336,000$

$440,000$

$544,000$

The IRR is $11$ 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 IRR

Reinvestment assumption of NPV