An investment has an installed cost of $529,800. The cash flows over the four-year life of the investment are projected to be $219,850, $236,450, $203,110, and $151,820. 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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Problem 9-18 NPV and Discount Rates (LO1)
An investment has an installed cost of $529,800. The cash flows over the four-year life of the investment are projected to be
$219,850, $236,450, $203,110, and $151,820.
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:Problem 9-18 NPV and Discount Rates (LO1) An investment has an installed cost of $529,800. The cash flows over the four-year life of the investment are projected to be $219,850, $236,450, $203,110, and $151,820. 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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