CoveAuklaOoglu, Inc. is considering a project which has net cash flows (the same as free cash flows) given below:

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%