Apache junction company is evaluating a capital expenditure


Question: PNPV and IRR:

Equal Annual Net Cash Inflows

Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $34,520, has predicted cash inflows of $8,000 per year for 15 years, and has no salvage value.

(a) Using a discount rate of 16 percent, determine the net present value of the investment proposal.(Round to the nearest whole number.)

(b) Determine the proposal's internal rate of return.

(c) What discount rate would produce a net present value of zero?

Could you please explain how to get the IRR on a BA II plus financial calculator?

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Finance Basics: Apache junction company is evaluating a capital expenditure
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