Additional WileyPLUS Problem 13-1

Tamarisk Corporation is considering adding a new product line. The cost of the factory and equipment to produce this product is $1,780,000. Company management expects net cash flows from the sale of this product to be $390,000 in each of the next eight years.

If Tamarisk uses a discount rate of 11 percent for projects like this, what is the net present value of this project?(Do not round intermediate calculations. Round answer to 0 decimal places, e.g. 5,275. Enter negative amounts using negative sign e.g. -45.25.)

NPV$

What is the internal rate of return?(Round answer to 2 decimal places, e.g. 52.50.)

Internal rate of return

%