$6.$ Dorothy Corporation has a project with the following cash flows: $($remember the year ze$-$ro number is negative$)$

Year $0$ Year $1$ Year $2$ Year $3$

Cash flows $-$$$1,000,000$ $$400,000$ $$600,000$ $$300,000$

Using a $6\%$ cost of capital, what is the net present value of this project? Should this project be accepted by Dorothy?

Answer rating: 100% (QA)

To calculate the net present value NPV of the project we need to discount each cash flow to its pres... View the full answer