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An investment has installed cost of $528,800. The cash flows over the four-year life of the investment are projected to be $220,850 , $237,450 ,
An investment has installed cost of $528,800. The cash flows over the four-year life of the investment are projected to be $220,850 , $237,450 , $204,110 , and $152,820 respectively.
SOLVE C.
a) If the discount rate is zero, what is the NPV?
= $286,230
b) If the discount rate is infinite, what is the NPV?
= $-528,800
c) At what discount rate is the NPV just equal to zero?
Show equation work.
IRR=
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