Assignment #7 Investment Analysis Pepe has been approached about a hotel investment proposal by a young entrepreneur named Benito. The young man seems to have done his homework and presents Pepe with a five-year pro-forma showing cash flows of $118,000, $138,900, $121,250, $142,870, and $146,780 respectively. Pepe knows he can earn an 8% return if he puts his money in a mutual fund. Benito is asking for $450,000. 1. What is the internal rate of return of this project? I 2. If you assume 8% as the cost of capital, compute net present value. 3. Should Pepe invest in this project? tri