6. Understanding the TRR and NPV The net present value (NPV) and internal rate of retum (IRR) methods of investment analysis are interrelated and are sometimes used tagether to make capital budgeting decisions. Green Caterpillar Gorden Supplies Inc. 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 Zeta is 13.80%, but he can't recall how much Green Caterpillar originally invested in the project nor the project's net present value (NPV). However, he found a note that contained the annual net cash flowi expected to be generated by Project Zeta. They are: The CFo has asked you to compute Project Zeta's initial investment using the information currentiy avallable to you. He has offered the following suggestions and observations: The GFO has asked you to compute Project Zeta's initiol investment using the information currently available to you. He has offered the foliowing 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 outfows-when the cash flows are discounted using the project's IRR. - The level of risk exhbited by Project Zeta is the same as that exhibited by the cornpany's average project, which means that Project Zeta's net cash flows can be discounted using Green Caterpiliar's 7.00% desired rate of retum. Given the data and hints, Project Zeta's inital investment is and its Npy is (both rounded to the nearest whole dollar)