25-2 Consider the following investment Proposal: Initial investment Depreciable assets Working capital $27,740 3,000 Operations (per...

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25-2 Consider the following investment Proposal: Initial investment Depreciable assets Working capital $27,740 3,000 Operations (per year for 4 years) Cash receipts 25000 Cash expenditures 15,000 Disinvestment Salvage value of plant and equipment 2,000 Recovery of working capital 3,000 Required: Determine each of the following: 5 a) Net present value at a 10 percent discount rate. b) Internal rate of return. 10.00% 7 Ba) Years of cash flows 9 1 0 2 1 3 2 4 3 Present value net cash flow 24 25 Initial investment NPV 26 27 b) Years of cash flows 28 Initial investment 29 1 30 2 31 3 25-2 Consider the following investment Proposal: Initial investment Depreciable assets Working capital $27,740 3,000 Operations (per year for 4 years) Cash receipts 25000 Cash expenditures 15,000 Disinvestment Salvage value of plant and equipment 2,000 Recovery of working capital 3,000 Required: Determine each of the following: 5 a) Net present value at a 10 percent discount rate. b) Internal rate of return. 10.00% 7 Ba) Years of cash flows 9 1 0 2 1 3 2 4 3 Present value net cash flow 24 25 Initial investment NPV 26 27 b) Years of cash flows 28 Initial investment 29 1 30 2 31 3