Chee Company has gathered the following data on a proposed investment project: Investment required in equipment $240,000 Annual cash inflows, $50,000 Salvage value, $0 Life of the investment, 8 years Required rate of return, 10% Assets will be depreciated using straight line depreciation method Required: Using the net present value and the internal rate of return methods, is this a good investment?

Chee Company has gathered the following data on a proposed investment project: Investment required in equipment... ..... $240,000 Annual cash inflows.... $50,000 Salvage value $0 Life of the investment. 8 years Required rate of return 10% Assets will be depreciated using straight line depreciation method Required: Using the net present value and the internal rate of return methods, is this a good investment