NPV and IRR: Unequal Annual Net Cash Inflows Assume that Goodrich Petroleum Corporation is evaluating a capital expenditure proposal that has the following predicted cash flows:

Initial Investment $(160,000)

Operation

Year 1 42,000

Year 2 95,000

Year 3 65,000

Salvage 0

b. Determine the proposals internal rate of return. (Refer to Appendix 12B if you use the table approach.) Hint: You will need to use a trial-and-error approach. Round to the nearest percent. (Example: 0.15268 = 15%)

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