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NPV and IRR: Unequal Annual Net Cash Inflows Assume that Goodrich Petroleum Corporation is evaluating...

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Accounting

NPV and IRR: Unequal Annual Net Cash Inflows Assume that Goodrich Petroleum Corporation is evaluating a capital expenditure proposal that has the following predicted cash flows:

Initial Investment $(39,330)
Operation
Year 1 13,000
Year 2 23,000
Year 3 15,000
Salvage 0

a. Using a discount rate of 10 percent, determine the net present value of the investment proposal. $Answer

b. Determine the proposal's internal rate of return. (Refer to Appendix 24B if you use the table approach.) Hint: You will need to use a trial-and-error approach. Round to the nearest percent. (Example: 0.15268 = 15%) Answer

%

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