Problem 9-18 NPV and Discount Rates [LO1]

An investment has an installed cost of $529,800. The cash flows over the four-year life of the investment are projected to be $219,850, $236,450, $203,110, and $151,820.

If the discount rate is zero, what is the NPV? (Do not round intermediate calculations.)

NPV

??$

If the discount rate is infinite, what is the NPV? (Negative amount should be indicated by a minus sign.)

NPV

??$

At what discount rate is the NPV just equal to zero? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

IRR

20.88%