Question: FULL SCREEN PRINTER VERSION BACK Your answer is partially correct. Try again. Sierra Company is considering a long-term investment project called ZIP. ZIP will require


FULL SCREEN PRINTER VERSION BACK Your answer is partially correct. Try again. Sierra Company is considering a long-term investment project called ZIP. ZIP will require an investment of $131,000. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $79,500, and annual cash outflows would increase by $38,700. The company's required rate of return is 10%. Click here to view PV 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 fa table provided, e.g. 1.25124 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 rejected (b) Calculate the internal rate of return on this project. (Round answer to 1 decimal place, e.g. 5.2%) Internal rate of return Identify whether the project should be accepted or rejected. The project should be rejected LINK TO TEXT LINK TO TEXT
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