An investment costs $20,132 and will generate cash flow of $4,000 annually for seven years. The firms cost of capital is 14 percent. Use Appendix D to answer the questions.

1. What is the investments internal rate of return? Round your answer to the nearest whole number.

   %

   Based on the internal rate of return, should the firm make the investment?

   The investment -Select-should beshould not beItem 2 made.

2. What is the investments net present value? Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.

   $

   Based on the net present value, should the firm make the investment?

   The investment -Select-should beshould not beItem 4 made.

3. Do the net present value and the internal rate of return suggest the same courses of action?

   The net present value and the internal rate of return suggest -Select-the samedifferentItem 5 courses of action.

appendix d