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1. 2. Wayne Company is considering a long-term investment project called ZIP, ZIP will require an investment of $128,300. It will have a useful life
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Wayne Company is considering a long-term investment project called ZIP, ZIP will require an investment of $128,300. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,300, and annual cash outflows would increase by $40,300. The company's required rate of return is 9%. Click here to view PV table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Whether this project should be accepted? The project should be Viera Corporation is considering investing in a new facility. The estimated cost of the facility is $1,768,153. It will be used for 12 years, then sold for $714,400. The facility will generate annual cash inflows of $381,800 and will need new annual cash outflows of $155,800. The company has a required rate of return of 7%. Click here to view PV table. Calculate the internal rate of return on this project. (Round answer to 0 decimal place, e.g. 13%.) Internal rate of return is Whether the project should be accepted. The project be accepted
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