An investment has an installed cost of $521,800. The cash flows over the four-year life of the investment are projected to be $227,850, $244,450, $211,110, and $159, 820. If the discount rate is zero, what is the NPV? (Omit $ sign in your response.) NPV $ If the discount rate is infinite, what is the NPV? ( Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $ At what discount rate is the NPV just equal to zero? ( Round the final answer to 2 decimal places.) IRR %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An investment has an installed cost of $521,800. The
cash flows over the four-year life of the investment are
projected to be $227,850, $244,450, $211,110, and $159,
820.
If the discount rate is zero, what is the NPV? (Omit $
sign in your response.)
NPV $
If the discount rate is infinite, what is the NPV? (
Negative answer should be indicated by a minus sign.
Omit $ sign in your response.)
NPV $
At what discount rate is the NPV just equal to zero? (
Round the final answer to 2 decimal places.)
IRR
%
Transcribed Image Text:An investment has an installed cost of $521,800. The cash flows over the four-year life of the investment are projected to be $227,850, $244,450, $211,110, and $159, 820. If the discount rate is zero, what is the NPV? (Omit $ sign in your response.) NPV $ If the discount rate is infinite, what is the NPV? ( Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $ At what discount rate is the NPV just equal to zero? ( Round the final answer to 2 decimal places.) IRR %
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