Management of a firm with a cost of capital of 12 percent is considering a $100,000 investment with annual cash flow of $44,524 for three years. What are the investment's net present value and internal rate of return? Use a minus sign to enter a negative value, if any. Round your answers for the net present value to the nearest dollar and for the internal rate of return to the nearest whole number. NPV = IRR =

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8TP: Fenton, Inc., has established a new strategic plan that calls for new capital investment. The...
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Management of a firm with a cost of capital of 12 percent is considering a $100,000 investment with
annual cash flow of $44,524 for three years.
What are the investment's net present value and internal rate of return? Use a minus sign to enter a
negative value, if any. Round your answers for the net present value to the nearest dollar and for the
internal rate of return to the nearest whole number.
NPV =
IRR =
Transcribed Image Text:Management of a firm with a cost of capital of 12 percent is considering a $100,000 investment with annual cash flow of $44,524 for three years. What are the investment's net present value and internal rate of return? Use a minus sign to enter a negative value, if any. Round your answers for the net present value to the nearest dollar and for the internal rate of return to the nearest whole number. NPV = IRR =
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