NPV and IRR: Equal Annual Net Cash Inflows (LO2) Apache Junction Company is evaluating a capital expenditure

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NPV and IRR: Equal Annual Net Cash Inflows (LO2)

Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $9,350, has predicted cash inflows of $2,000 per year for 15 years, and has no salvage value.

Required

a. Using a discount rate of 16 percent, determine the net present value of the investment proposal.

b. Determine the proposal’s internal rate of return, (Refer to Appendix 12B if you use the table approach. ) :

c. What discount rate would produce a net present value of zero? LO.1

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Managerial Accounting

ISBN: 9781934319802

6th Edition

Authors: Hartgraves And Morse

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Question Posted: Jul 10, 2024 02:02 AM

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NPV and IRR: Equal Annual Net Cash Inflows (LO2) Apache Junction Company is evaluating a capital expenditure

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Managerial Accounting

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