CH 25-4

Net Present Value Method, Internal Rate of Return Method, and Analysis

The management of Quest Media Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows:

The radio station requires an investment of $1,142,000, while the TV station requires an investment of $1,967,640. No residual value is expected from either project.

TV Station $760,000 760,000 760,000 760,000 Year Radio Station $400,000 400,000 400,000 400,000 4