Turner Company has gathered the

Managerial Accounting     

use the following to answer questions A and B:     

(Ignore income taxes in this problem.) Turner Company has gathered the following data on a proposed investment project:     

Investment in depreciable equipment........... Annual cash flows........................................ Salvage value of equipment ......................... Life of the equipment ................................... Required rate of return .................................     

$225,000 $40,000 $0 15 years     

0.08     

The company uses straight-line depreciation on all equipment.     

A. The net present value of this investment is: ___________________     

B. The internal rate of return on the investment is closest to: