What discount rate is the NPV just equal to zero

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An investment has an installed cost of $577,382. The cash flows over the four-year life of the investment are projected to be $206,584, $250,318, $198,674, and $166,313. Requirement 1: If the discount rate is zero, what is the NPV? (Do not round intermediate calculations.) NPV $ 244,507 correct Requirement 2: If the discount rate is infinite, what is the NPV? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign.) NPV $ n/r incorrect Requirement 3: At what discount rate is the NPV just equal to zero? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Discount rate n/r incorrect

Reference no: EM13951641

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What discount rate is the NPV just equal to zero : An investment has an installed cost of $577,382. The cash flows over the four-year life of the investment are projected to be $206,584, $250,318, $198,674, and $166,313. Requirement 1: If the discount rate is zero, what is the NPV? At what discount r..

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