NPV and IRR: Unequal Annual Net Cash Inflows (LO2) |

Assume that Goodrich Corporation is evaluating a capital expenditure proposal that has the following predicted cash flows:

MitiaAlInVEStInehteeee cement. oo ce. eater st nation $(85,160)
Operation VASE de cash eG oe oe pce ceo ouSeh So 36,000 W(GEIC2 ates Aig BO id eee iG Dan eet eon. co.G 010 6.0 50,000 VASIEI AG cs ca Src. Be ero a eee err Gc caer cecrso) o-c 40,000 GER ti: grinds aone an dalameeR ois me Doan Atw.t 0 Required

a. Using a discount rate of 12 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. ) LO.1