Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Just answer 2nd question Kingbird Corporation is considering adding a new product line. The cost of the factory and equipment to produce this product is

image text in transcribed

Just answer 2nd question

Kingbird Corporation is considering adding a new product line. The cost of the factory and equipment to produce this product is $1,600,000. Company management expects net cash flows from the sale of this product to be $580,000 in each of the next eight years. If Kingbird uses a discount rate of 12 percent for projects like this, what is the net present value of this project? (Round intermediate calculations to 5 decimal places, e.g. 0.42354. Round answer to 0 decimal places, e.g. 52.25. Enter negative amounts using negative sign e.g. -45.25.) NPV $ What is the internal rate of return? (Round answer to 2 decimal places, e.g. 52.50.) Internal rate of return %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Building Your Future

Authors: Robert Walker, Kristy Walker

2nd Edition

0077861728, 9780077861728

More Books

Students also viewed these Finance questions

Question

3. Identify the role of middleware tools.

Answered: 1 week ago