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Blue Spruce Company is considering a long$-$term investment project called ZIP. ZIP will require an investment of $$132,000.$ It will have a useful life of four years and no salvage value. Annual cash inflows would increase by increase by $$39,500.$ In addition, the company's required rate of return is $9\%.$

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$($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 rejecte

Question $7$ of $7$

Identify whether the project should be accepted or rejected.

The project should be rejected $v.$

$($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

rejected