(Answered) Question - evaluating capital investment using discounted

Accounting

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%.

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