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Coronado Company is considering a long-term investment project called ZIP. ZIP will require an investment of $131,000. It will have a useful life of four
Coronado Company is considering a long-term investment project called ZIP. ZIP will require an investment of $131,000. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $79,500, and annual cash outflows would increase by $38,700. In addition, the company's required rate of return is 10%. Click here to view the factor table. (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 0 decimal places, e.g. 5,275.) Net present value $ Identify whether the project should be accepted or rejected. The project should be (b) Calculate the internal rate of return on this project. (Round answer to 1 decimal place, e.g. 5.2\%) Internal rate of return % Calculate the internal rate of return on this project. (Round answer to 1 decimal place, e.g. 5.2\%) Internal rate of return Identify whether the project should be accepted or rejected. The project should be eTextbook and Media
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