Problem: An investment has a total installed cost of $5,346. The cash flows over the four year life of the investment are projected to be $1,459, $2,012, $2,234, and $1,005.
a) If the discount rate is zero, what is the NPV?
b) If the discount rate is infinity, what is the NPV?
c) What is the IRR on the investment?
d) Based on these three points, sketch the NPV profile.