NPV and IRR: Equal Annual Net Cash Inflows Winter Fun Company is evaluating a capital expenditure proposal that requires an initial investment of $68,168, has predicted cash inflows of $14,000 per year for seven years, and has no salvage value.

a. Using a discounted rate of 14 percent, determine the net present value of the investment proposal.

Use a negative sign with your answer, if appropriate. $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? Answer

%