Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marigold Corporation is considering adding a new product line. The cost of the factory and equipment to produce this product is $1,900,000. Company management expects

image text in transcribed

Marigold Corporation is considering adding a new product line. The cost of the factory and equipment to produce this product is $1,900,000. Company management expects net cash flows from the sale of this product to be $590,000 in each of the next eight years. If Marigold 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.)

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

Step: 3

blur-text-image

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

Ultimate Manual For Newbie Property Investors

Authors: Kimberly K. Benson

1st Edition

979-8866108688

More Books

Students also viewed these Finance questions