Question
% 20 NPV and IRR: Equal Annual Net Cash Inflows Kailey James Company is evaluating a capital expenditure proposal that requires an initial investment of
% 20 NPV and IRR: Equal Annual Net Cash Inflows Kailey James Company is evaluating a capital expenditure proposal that requires an initial investment of $30,723, has predicted cash inflows of $5,000 per year for 10 years, and has no salvage value. (a) Using a discount rate of 8%, determine the net present value of the investment proposal. (Round to the nearest whole number.) (b) Determine the proposal's internal rate of return. Round answer to the nearest whole percentage (for example, 0.34555 = 35%). % (c) What discount rate would produce a net present value of zero? Round answer to the nearest whole percentage (for example, 0.34555 = 35%)
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