Your firm has estimated the following cash flows for a capital investment project. The firm's required rate of return is 12% 5. Year Project Cash Flows $48,000 20,000 20,000 20,000 5,000 5,000 5,000 5,000 0 Project Cash flows Year Present Value at 12% 0 $(48,000) $20,000 $20,000 $20,000 $5,000 $5,000 $5,000 $(5,000) $(48,000) $17,85714 15,943.88 $14,235.60 3,17759 $2,837.13 $2,533.16 $(2,261.75) 5 4 What is the NPV of the project? 5 A. $ 5,821 B. 6,323 C. $ 7,221 D. $10,846 NPV of Project is: $6,323 Bonus Question: (2 Points) Which of the following is true? A. You should accept the project since the IRR>12% B. You should accept the project since the IRR