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NPV and IRR: Unequal Annual Net Cash Inflows Salt River Company is evaluating a capital expenditure proposal that has the following predicted cash flows: Initial
NPV and IRR: Unequal Annual Net Cash Inflows Salt River Company is evaluating a capital expenditure proposal that has the following predicted cash flows:
Initial investment | $(70,570) |
Operation | |
Year 1 | 30,000 |
Year 2 | 40,000 |
Year 3 | 20,000 |
Salvage | 0 |
(a) Using a discount rate of 12 percent, determine the net present value of the investment proposal. (Round to the nearest whole number.) $ Answer
(b) Determine the proposal's internal rate of return. (Round to the nearest whole percentage.) Answer %
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