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Bonita Company is considering a long term investment project called ZIP ZIP will require an investment of $130,000. It will have a useful life of
Bonita Company is considering a long term investment project called ZIP ZIP will require an investment of $130,000. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $80,100, and annual cash outflows would increase by $40,500. In addition, the company's required rate of returnis 9%. Click here to view the factor tables (a) Calculate the net present value on this project. (If the answer is negative, use either a negative sign preceding the number e.g, -5,275 or parentheses e.g. (5,275). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answer to O decimal places, e.g. 5,275.) Net present value $ 43372.76 Identify whether the project should be accepted or rejected. The project should be accepted (b) Calculate the internal rate of return on this project. (Round answer to 1 decimal place, eg. 5.2%) Internal rate of return % Identify whether the project should be accepted or rejected. The project should be
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