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Current Attempt in Progress Splish Company is considering a long-term investment project called ZIP. ZIP will require an investment of $130,000. It will have a
Current Attempt in Progress Splish 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 $79,000, and annual cash outflows would increase by $39,200. In addition, the company's required rate of return is 9%. 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 eg. 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.) Identify whether the project should be accepted or rejected. 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
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