Current Attempt in Progress

Pharoah Company is considering a long$-$term investment project called ZIP. ZIP will require an investment of $$122,000.$ It will have a

useful life of four years and no salvage value. Annual cash inflows would increase by $$79,200,$ and annual cash outflows would increase

by $$39,400.$ In addition, the company's required rate of return is $12\%.$

Click here to view the factor table.

$($a$)$

Calculate the net present value on this project. $($If the answer is negative, use either a negative sign preceding the number e$.$g$.-5,275$ or

parentheses e$.$g$.(5,275).$ For calculation purposes, use $5$ decimal places as displayed in the factor table provided, e$.$g$.1\mathrm{.}25124$ and final answer

to $0$ decimal places, e$.$g$.5,275.)$

Net present value

Identify whether the project should be accepted or rejected.

The project should be

$($b$)$

Calculate the internal rate of return on this project. $($Round answer to $1$ decimal place, e$.$g$.5\mathrm{.}2\%)$

Internal rate of return

Identify whether the project should be accepted or rejected.

The project should be