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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
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 $(48,660)
Operation
Year 1: 16,000
Year 2: 26,000
Year 3: 21,000
Salvage: 0
a. Using a discount rate of 10 percent, determine the net present value of the investment proposal. Answer: (Round answer to the nearest whole number.)
b. Determine the proposal's internal rate of return. Round to the nearest percent. (Example: 0.15268 = 15%) Answer:
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