Question: net present value calculation Blossom Company is considering a long-term investment project called ZIP ZIP will require an investment of $124,000. It will have a
Blossom Company is considering a long-term investment project called ZIP ZIP will require an investment of $124,000. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $80.900, and annual cash outflows would increase by $41.500. In addition, the company's required rate of return is 11% 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 eg.-5,275 or parentheses es. (5,275). For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124 and final answer to O decimal places, 6.8.5,275.) Net present value $ Identify whether the project should be accepted or rejected. The project should be 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, cg, 5.2%) Internal rate of return % Identify whether the project should be accepted or rejected. The project should be
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