Colorado Company is considering a project with an initial investment of $599,500 that is expected to produce cash inflows of $128,000 for ten years. Colorado's required rate of return is 10%.

14. What is the NPV of the project? (Enter the factor amount to three decimal places, X.XXX. Round the present value of the annuity to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.)

		Net Cash	Annuity PV Factor	Present
Years		Inflow	(i=10%, n=10)	Value
1 - 10	Present value of annuity
0	Investment
	Net present value

15. What is the IRR of the project?

Start by calculating the Annuity PV factor. (Enter the factor amount to three decimal places, X.XXX.)

	/		=	Annuity PV factor
	/		=

The IRR of the project is

12%-14%

14%

14%-15%

16%-18%

18%

18%-20%

.

16. Is this an acceptable project for Colorado?

This (is, is not) an acceptable project for Colorado, because the NPV is (greater, less) than zero and the IRR is (greater, less) than colorados required rate of return