Twitter is considering purchasing a new Al computer to manage its platform. This computer

would cost $$74,250$ and generate cash flows according to the following table over the next $5$

years. Its has an IRR of $12\%$ and Twitter has a WACC of $8\%.$

a$)$ If you use the reinvestment assumption from the NPV method, what would be the total

value of these inflows at the end of the $5$ year period?

b$)$ If the reinvestment assumption from the IRR method is used, what would be the total value

of these inflows at the end of the $5$ year period?

c$)$ Which assumption is more plausible?