Determine the net present value of the investment proposal

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Reference no: EM133162070

Question - Kailey James Company is evaluating a capital expenditure proposal that requires an initial investment of $30,723, has predicted cash inflows of $5,000 per year for 10 years, and has no salvage value.

Required -

(a) Using a discount rate of 8%, determine the net present value of the investment proposal.

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

(c) What discount rate would produce a net present value of zero?

Reference no: EM133162070

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