Question
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 | $(53,370) |
| Operation | |
| Year 1 | 20,000 |
| Year 2 | 40,000 |
| Year 3 | 10,000 |
| 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.)
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Accounting Principles Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
8th Canadian Edition
111950242X, 1-119-50242-5, 978-1119502425
