Question - Evaluating Capital Investment using Discounted Cash Flows
The West Company is considering a capital investment project that requires an investment of $37,910. The project is expected to have annual cash inflows of $10,000 occurring at the end of each of the next five years.
Required:
a) Determine the internal rate of return for the project.
b) Determine the net present value of the project using discount rates of: 8%, 10%, and 12%.