NPV and IRR: Equal Annual Net Cash Inflows Assume Spotify is evaluating a capital expenditure proposal that requires an initial investment of $294,800, has predicted cash inflows of $67,750 per year for six years, and has no salvage value.

a. Using a discount rate of 12%, determine the net present value of the investment proposal.

Use a negative sign with your answer, if appropriate. Round your answer to the nearest whole number. $Answer

b. Determine the proposal's internal rate of return. (Refer to Appendix 12B if you use the table approach.)

Round to the nearest percent. (Example: 0.1568 = 16%) Answer%

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

Round to the nearest percent. (Example: 0.1568 = 16%)