NPV and IRR: Equal Annual Net Cash Inflows

Winter Fun Company is evaluating a capital expenditure proposal that requires an initial investment of $$47,124$ has predicted cash inflows of $$10,000$ 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. Round your answer to the nearest whole number.$$

$Answer $1$

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

Round to the nearest percent. $($Example: $0\mathrm{.}1568=16\%)$

Answer $2\%$

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

Round to the nearest percent. $($Example: $0\mathrm{.}1568=16\%)$

Answer $3\%$