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An initial investment cost is $200,000 and each annual net cash flow is $40,000 for the next 7 years. The expected rate of return for
An initial investment cost is $200,000 and each annual net cash flow is $40,000 for the next 7 years. The expected rate of return for such a purchase is 6%. What is the internal rate of return for this investment? (Round the answer to the nearest whole number. Only enter the number. For example, if the answer is 6.123% you would enter 6) Rudolph Incorporated is determining the NPV for a new X-ray machine. Initial investment to buy the machine: $200,000 Expected annual cash flows (cost savings, efficiencies): $70,000 Expected life of machine: 6 years Required rate of return on such an investment: 10% What is the NPV? (Round answers to nearest whole number. Do not enter commas or periods. If answer is, 95,631.55 you would enter 95, 632)
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