An investment has an installed cost of $520,800. The cash flows over the four-ye

Question

An investment has an installed cost of $520,800. The cash flows over the four-year life of the investment are projected to be $228,850, $245,450, $212,110, and $160,820. If the discount rate is zero, what is the NPV?

If the discount rate is infinite, what is the NPV? (Negative amount should be indicated by a minus sign.)

At what discount rate is the NPV just equal to zero? (Round your answer to 2 decimal places. (e.g., 32.16))

If the discount rate is infinite, what is the NPV? (Negative amount should be indicated by a minus sign.)

At what discount rate is the NPV just equal to zero? (Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

you said at NPV at infinity

NPV at infinity = -520800

NPV at zero

NPV = - 520800+ 228850 + 245450 + 212110 + 160820

=326430

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