CoveAuklaOoglu, Inc. is considering a project which has net cash flows (the same as free cash flows) given below:
Year CF ($)
0 -1,000 (Initial Outlay)
1 500
2 400
3 300
4 100
Given that the company's WACC is 10%, what is the company's NPV?
A. $78.82
B. $109.45
C. $49.18
D. $54.06
Garrod Dickens wants to calculate the IRR for the above project for CoveAuklaOoglu, Inc. His answer based on the cash flows given in the previous question would be:
A. 11.8%
B. 14.5%
C. 12.45%
D. 13.02%