What is the internal rate of return-tamarisk corporation

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Additional WileyPLUS Problem 13-1

Tamarisk Corporation is considering adding a new product line. The cost of the factory and equipment to produce this product is $1,780,000. Company management expects net cash flows from the sale of this product to be $390,000 in each of the next eight years.

If Tamarisk uses a discount rate of 11 percent for projects like this, what is the net present value of this project? (Do not round intermediate calculations. Round answer to 0 decimal places, e.g. 5,275. Enter negative amounts using negative sign e.g. -45.25.)

What is the internal rate of return? (Round answer to 2 decimal places, e.g. 52.50.)

Reference no: EM132487814

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