Goodrich Corporation_NPV & IRR
Describe the product you selected in terms of the four utilities of customer value.
July 6, 2020Cash Flow_ P14-14A_P14-15A_P14-19A
July 6, 2020Goodrich Corporation_NPV & IRR
Assume that Goodrich Corporationis evaluating a capital expenditure proposal that has the following predicted cash flows:
Initial investment $(85,160)
Operation
Year 1 . . . . . . . . . . . . . . . . .36,000
Year 2 . . . . . . . . . . . . . . . . .50,000
Year 3 . . . . . . . . . . . . . .. . . 40,000
Salvage. . . . . . . . . . .. . . . . .0
a.Using a discount rate of 12 percent, determine the net present value of the investment proposal.
b.Determine the proposal’s internal rate of return. (Refer to Appendix 24B if you use the table approach.)
