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NPV and IRR:
Equal Annual Net Cash Inflows
Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $13,257, has predicted cash inflows of $3,000 per year for 18 years, and has no salvage value.

(a) Using a discount rate of 16 percent, determine the net present value of the investment proposal. (Round to the nearest whole number.)
$ Answer 1


(b) Determine the proposal's internal rate of return. Round answer to the nearest whole percentage (for example, 0.34555 = 35%).
Answer 2
%

(c) What discount rate would produce a net present value of zero? Round answer to the nearest whole percentage (for example, 0.34555 = 35%).
Answer 3
%


Sagot :

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