Determine the net present value of the investment proposal
Course:- Accounting Basics
Reference No.:- EM132082212

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Question - Salt River Company is evaluating a capital expenditure proposal that has the following predicted cash flows:

Initial investment

$ (42,070)


Year 1


Year 2


Year 3




(a) Using a discount rate of 14 percent, determine the net present value of the investment proposal.

(b) Determine the proposal's internal rate of return.

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