The Following Data Concern an Investment Project $$\begin{array} { | l | l |} \hline\text { Discournt rate } & \$ 14 \%\\\hline\end{array}$$

question 131

Essay

The following data concern an investment project:
$\begin{array}{|l|r|}\hline \text { Investment in Equipment } & \$ 16,000 \\\hline \text { Net Annual cash inflows } & \$ 3,600 \\\hline \text { Working capital required } & \$ 4,500 \\\hline \text { Salvage value of the equipment } & \$ 2,000 \\\hline \text { Life of the project } & \$ 12 \text { years } \\\hline\end{array}$
$$\begin{array} { | l | l |} \hline\text { Discournt rate } & \$ 14 \%\\\hline\end{array}$$ The working capital will be released for use elsewhere at the conclusion of the project.(Ignore income taxes in this problem.)
Required:
Calculate the project's net present value and the internal rate of return.

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Definitions:

Receptors

Specialized cells or protein molecules that receive and transduce signals in the body and brain.

Fovea

A small depression in the retina of the eye where visual acuity is highest due to the concentration of cones.

Cones

Photoreceptor cells in the retina of the eye that function best in bright light and enable color vision.

Rods

Photoreceptor cells in the retina of the eye that are extremely sensitive to light and enable vision in low light conditions but do not perceive color.