Suppose that goodrich corporation is evaluating a capital

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Suppose that Goodrich Corporation is evaluating a capital expenditure proposal that has the following predicted cash flows:

Initial investment $(85,160)

Operation

Year 1 . . . . . . . . . . . . . . . . .36,000

Year 2 . . . . . . . . . . . . . . . . .50,000

Year 3 . . . . . . . . . . . . . .. . . 40,000

Salvage. . . . . . . . . . .. . . . . .0

a. Using a discount rate of 12 percent, determine the net present value of the investment proposal.

b. Determine the proposal's internal rate of return. (Refer to Appendix 24B if you use the table approach.)

Reference no: EM13393025

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