Using a disocunt rate of 14 percvent determine the net

Reference no: EM13600936

Salt River Copmany is evaluating a capital expenditure propsal that has the following predicted cash flows:
Intial investment $(43,270)

Operation
Year 1 20,000
Year 2 30,000
Year 3 10,000
Salvage 0

a. Using a disocunt rate of 14 percvent, determine the net present value of the investment proposal. Show work.
b. Determine the proposal's internal rate of return. Show work.

Reference no: EM13600936

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