The Zero Machine Company is evaluating a capital expenditure proposal that requires an initial investment of $20,960 and has predicted cash inflows of $5,000 per year for 10 years. It will have no salvage value.
a. Using a required rate of return of 16%, determine the net present value of the investment proposal.
b. Determine the proposal's internal rate of return.© BrainMass Inc. brainmass.com March 4, 2021, 8:03 pm ad1c9bdddf
Excel file contains calculations of Present Value and IRR.