BackInSoon Inc. has estimated that a proposed projects10-year annual net cash be

BackInSoon Inc. has estimated that a proposed projects10-year annual net cash benefit received each year end will be$2500 with an additional terminal benefit of $5000 at the end ofthe tenth year. Assuming that these cash inflows satisfy exactlyBackInSoons required rate of return of 8 percent calculate theinitial cash outlay. (Hint: With a desired IRR of 8% use the IRRformula: ICO = discounted cash flows.)