Question: Wildhorse Corporation is considering adding a new product line. The cost of the factory and equipment to produce this produce is $1,600,000. Company management expects

Wildhorse Corporation is considering adding a new product line. The cost of the factory and equipment to produce this produce is $1,600,000. Company management expects net cash flows from the sale of this product to be $460,000 in each of the next eight years.

If Wildhorse uses a discount rate of 12 percent for projects like this, what is the net present value of this project?

What is the internal rate of return?

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