Snow devil company is evaluating a capital expenditure

Reference no: EM13600934

Snow devil company is evaluating a capital expenditure proposal that requires an intial investment of $32,312, has predicted cash inflows of $8,000 per year for seven years, and has no salvage value.

a. Using a discount rate of 12 percent, determine the net present value of the investment proposal. Show work.
b. Determine the proposal's internal rate of return. Show work.
c. What discount rate would produce a net present value of zero? Show work.

Reference no: EM13600934

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