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A B D E F G H I J K 3 An investment has an installed cost of $638,400. The cash flows over the four-year
A B D E F G H I J K 3 An investment has an installed cost of $638,400. The cash flows over the four-year life of the investment are projected to be $236,800, $257,380, $225,320, and $167,410. If the discount rate is zero, what is the NPV? If the discount rate is infinite, what is the NPV? At what discount rate is the NPV just equal to zero? 4 5 6 7 8 Year 0 Year 1 Year 2 Year 3 Year 4 A A A A A $ (638,400) 236,800 257,380 225,320 167,410 9 10 11 12 Discount rate 0% 13 14 15 Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel functions to answer this question. 16 17 NPV at zero percent 18 19 NPV at an infinite interest rate 20 21 Zero NPV discount rate
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