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PLEASE EXPLAIN STEP BY STEP NPV and IRR: Unequal Annual Net Cash Inflows Rocky Road Company is evaluating a capital expenditure proposal that has the
PLEASE EXPLAIN STEP BY STEP
NPV and IRR: Unequal Annual Net Cash Inflows Rocky Road Company is evaluating a capital expenditure proposal that has the following predicted cash flows:
Initial investment | $ (90,220) |
Operation | |
Year 1 | 41,275 |
Year 2 | 60,000 |
Year 3 | 20,000 |
Salvage | 0 |
(a) Using a discount rate of 14 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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