NPV and IRR: Unequal Annual Net Cash Inflows

Assume that Goodrich Corporation is evaluating a capital expenditure proposal that has the following predicted cash flows:

Initial investment	$(85,160)
Operation
Year 1	36,000
Year 2	50,000
Year 3	40,000
Salvage	0

1. Using a discount rate of 12 percent, determine the net present value if the investment proposal.
2. Determine the proposals internal rate of return.