Determine the proposal internal rate of return

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Question - NPV and IRR - Unequal Annual Net Cash Inflows - Assume that Goodrich Petroleum Corporation is evaluating a capital expenditure proposal that has the following predicted cash flows:

Initial Investment $(58,220)

Operation

Year 1 23,000

Year 2 31,000

Year 3 22,000

Salvage 0

Required -

a. Using a discount rate of 10 percent, determine the net present value of the investment proposal.

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

Reference no: EM133068480

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