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Determine the net present value of the investment proposal

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Reference no: EM131762560

NPV and IRR:

Unequal Annual Net Cash Inflows

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

Initial investment $(53,370)
Operation  
Year 1 20,000
Year 2 40,000
Year 3 10,000
Salvage 0

(a) Using a discount rate of 12 percent, determine the net present value of the investment proposal. (Round to the nearest whole number.)

(b) Determine the proposal's internal rate of return. (Round to the nearest whole percentage.)

Reference no: EM131762560

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