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Determine the proposal internal rate of return

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Question - Equal Annual Net Cash Inflows

Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $15,666, has predicted cash inflows of $3,000 per year for 17 years, and has no salvage value.

(a) Using a discount rate of 16 percent, 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: EM132056474

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