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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%

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