Question - Equal Annual Net Cash Inflows
Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $15,666, has predicted cash inflows of $3,000 per year for 17 years, and has no salvage value.
(a) Using a discount rate of 16 percent, determine the net present value of the investment proposal.
(b) Determine the proposal's internal rate of return.
(c) What discount rate would produce a net present value of zero?