Project LMN has an initial cost of $10,000 and annual cash inflows of $2,825, $3,192, $3,607, and $4,076 in years 1–4. What is the NPV assuming a 12% discount rate? When the project was completed, none of the cash flows were reinvested. Sum up the cash flows and determine the annual return on the project based on the initial $10,000 investment. Why is the annual return on the project below the 12% discount rate?