The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are somitimes ured together to make capital budgeting decisions. Consider the case of Cute Camel Woodcraft Company: Last Tuesday, Cute Camel Wooderaft Company lost a portion of its planning and financial data when both its main and its badkup serveis crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Zeta is 14.6\%, but he can't recall haw much Cute Camel originally invested in the project nor the project's net present value (NPV). However, he found a note that detaled the annual net cash flows expected to be generated by Project Zeta. They are: The CFO has asked you to compute Project Zeta's initial investment using the information currently available to you. He has offered the follow suggestions and observations: The CFO has asked you to compute Project Zeta's initial investment using the information currently available to you, He has offered the folowiny 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 inflews equals the discounted value of its cash outflows-when the cash flows are discounted using the project's IRR. - The level of risk exhibited by Project Zeta is the same as that exhibited by the company's average project, which mears that Project Zeta's net cash flows can be discounted using Cute Carnel's 7\% WAcC. Given the data and hints, Project Zeta's initial investment is , and lts NFV is (rounded to the nearest whole dollar). A project's IRR will if the project's cash inflows increase, and everything else is unatfected. level of risk exhibited by Project Zeta is thi is net cash flows can be discounted using V is zero or the discounted value of its cash inflows icounted using the project's IRR. e company's average project, which means that Project ta and hints, Project Zeta's initial investment is , and its NPV is (rounded to the nearest wh R will if the project's cash inflows increase, and everything else is unaffected. The CFO has asked you to compute Project zeta's initial irivestment using the inforreation currenth available to yua. He has oflered the following suggestions and observations: - A project's IRR represents the return the project would generate when its Npy is zero or theadiomiated value of its cach influm equals the discounted value of its cash outflows-when the cash flows are discounted usin 32 - Whe level of risk exhibited by Project Zeta is the same as that exhibited by the company's Zeta's net cash flows can be discounted using Cute Camels T\% WACC. Given the data and hints, Project Zeta's initial investment is doliar). A project's IRR will if the project's cash inflows increase, and everything else is unaffected. The CFO has asked you to compute Project Zeta's initial investment using the information currently available to you. He has offered the 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 outflows-when the cash flows are discounted using the project's IRR. - The level of risk exhibited by Project Zeta is the same as that exhibited by the company's average project, which means that Proj Zeta's net cash flows can be discounted using Cute Camel's 7% WACC. Given the data and dollar). is initial investment is , and its NPV is (rounded to the near A project's IRR will If the project's cash inflows increase, and everything else is unaffected