The Hudson Corporation makes an investment of $24,000 that provides the following cash flow:
|
Year
|
Cash Flow
|
|
1................
|
$ 13,000
|
|
2................
|
13,000
|
|
3................
|
4,000
|
a. What is the net present value at an 8 percent discount rate?
b. What is the internal rate of return?
c. In this problem, would you make the same decision under both parts a and b?