Payback Period, IRR, and Minimum Cash Flows The management of Mesquite Limited is currently evaluating the following investment proposal:

Initial investment	$250,000	--	--	--	--
Net operating
cash inflows	--	$100,000	$100,000	$100,000	$100,000

(b) Determine the proposal's internal rate of return. (Refer to Appendix 12B if you use the table approach.)

Answer

%

(c) Given the amount of the initial investment, determine the minimum annual net cash inflows required to obtain an internal rate of return of 8 percent. Round the answer to the nearest dollar.

$

Answer