Question: NPV and IRR: Equal Annual Net Cash Inflows Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $34,520, has
NPV and IRR: Equal Annual Net Cash Inflows Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $34,520, has predicted cash inflows of $8,000 per year for 15 years, and has no salvage value. (a) Using a discount rate of 16 percent, determine the net present value of the investment proposal.(Round to the nearest whole number.) $ Answer 0 Incorrect (b) Determine the proposal's internal rate of return. Answer 22 Correct % (c) What discount rate would produce a net present value of zero? Answer 22 Correct %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
