Cooper Electronics uses NPV profiles to visually evaluate competing projects. Key data for the two projects under consideration are given in the following table:

Using these data, graph, on the same set of axes, the NPV profiles for each project using discount rates of

0% 8%, and the IRR.

The IRR of project Terra is %. (Round to two decimal places.)

Terra

Firma

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Initial investment

$32,000

$28,000

Year

Operating cash inflows

1

$12 ,000

$8,000

2

$12,000

$12,000

3

$9,000

$8,000

4

$9,000

$12,000