appendix d

An investment costs $17,944 and will generate cash flow of $4,000 annually for sIx years. The firm's cost of capital is 10 percent. Use Appendox D to answer the questions. a. What is the investment's 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 -Selact- made. b. What is the investment's net present value? Use a minus sign to enter a negative value, f any, Round your answer to the nearest dollar. %24 Based on the net present value, should the firm make the investment? The investment -Select- made. Interest Factors for the Present Value of an Annuity of One Dollar Time Period (e.g. year) 1% 2% 4% 5% 6% 8% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2577 2.531 2.487 2.402 2322 2.246 2.174 2.106 1.981 1.868 1.766 1.674 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 5. 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3,890 3.791 3,605 3.433 3.274 3.127 2991 2.745 2.532 2.345 2.181 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.43S 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 .184 2.868 2.603 9.471 8.983 8.530 8.111 10 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 11 12 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6 424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 13 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6 002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 14 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 15 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8 851 8.312 7824 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 16 15.562 14.292 13.166 12166 11.274 10.477 9.763 9.122 8.544 8.002 7.120 6.373 S.749 5.222 4.775 4.059 3.518 3.097 2.763 17 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9372 8.756 8.201 7.250 6.467 5.818 5.273 4.812 4.080 3.529g 3.104 2.767 18 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 5.877 5.316 4 844 4.097 3.539 3.109 2.770 20 18.046 16,351 14,877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10 675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 25 30 25.808 22.937 19.600 17.292 15.373 13.765 12 409 11.258 10,274 9427 8.055 7003 6.177 5.517 4.979 4.160 3.569 3.124 2.778 a. 47890