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: