The Hudson Corporation makes an investment of $24,000 that provides the following cash flow: Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year 1 2 3 Cash Flow $ 13,000 13,000 4,000 a. What is the net present value at an 8 percent discount rate? Note: Do not round intermediate calculations and round your answer to 2 decimal places. Net present value $ Internal rate of return 2,355.00 b. What is the internal rate of return? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. % c. Would you make the same decision under both parts a and b? Yes No

The Hudson Corporation makes an investment of $24,000 that provides the following cash flow: Use Appendix B and AppendixD for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the net present value at an 8 percent discount rate? Note: Do not round intermediate calculations and round your answer to 2 decimal places. b. What is the internal rate of return? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. c. Would you make the same decision under both parts a and b ? Yes No