An investment has an installed cost of $787,350. The cash flows over the four-year life of the investment are projected to be $312,615, $304,172, $245,367, and $229,431. a. If the discount rate is zero, what is the NPV? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. If the discount rate is infinite, what is the NPV? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. At what discount rate is the NPV equal to zero? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is not complete. a. b. C. NPV NPV 304,235 $ -787,350 Discount rate

Principles of Instrumental Analysis
7th Edition
ISBN:9781305577213
Author:Douglas A. Skoog, F. James Holler, Stanley R. Crouch
Publisher:Douglas A. Skoog, F. James Holler, Stanley R. Crouch
Chapter34: Particle Size Determination
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Problem 34.12QAP
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An investment has an installed cost of $787,350. The cash flows over the four-year life of
the investment are projected to be $312,615, $304,172, $245,367, and $229,431.
a. If the discount rate is zero, what is the NPV? (Do not round intermediate calculations
and round your answer to the nearest whole number, e.g., 32.)
b. If the discount rate is infinite, what is the NPV? (A negative answer should be
indicated by a minus sign. Do not round intermediate calculations and round your
answer to the nearest whole number, e.g., 32.)
c. At what discount rate is the NPV equal to zero? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Answer is not complete.
a.
b.
C.
NPV
NPV
304,235
$
-787,350
Discount rate
Transcribed Image Text:An investment has an installed cost of $787,350. The cash flows over the four-year life of the investment are projected to be $312,615, $304,172, $245,367, and $229,431. a. If the discount rate is zero, what is the NPV? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. If the discount rate is infinite, what is the NPV? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. At what discount rate is the NPV equal to zero? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is not complete. a. b. C. NPV NPV 304,235 $ -787,350 Discount rate
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