NPV and IRR:

Equal Annual Net Cash Inflows

Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $44,190, has predicted cash inflows of $9,000 per year for 13 years, and has no salvage value.

(a) Using a discount rate of 16 percent, determine the net present value of the investment proposal.(Round to the nearest whole number.)

$Answer

(b) Determine the proposal's internal rate of return.

Answer

%

(c) What discount rate would produce a net present value of zero?

Answer

%