Wilkinson, Inc., which has a cost of capital of 12%, invested in a project with an internal rate of return (IRR) of 14%. The project is expected to have a useful life of 4 years, and it will produce net cash inflows as follows:

Year	NetCashInflows
1	$1,000
2	2,000
3	4,000
4	4,000

The present value of $1 is as follows:

	Present Value
No.of Periods	12%	14%
1	0.893	0.877
2	0.797	0.769
3	0.712	0.675
4	0.636	0.592

The initial cost of this project amounted to

$9,647

$7,483

$11,000

$12,540