A company is considering a new project requiring an initial investment of $$800,000.$ The projected annual revenue from the project is $$200,000.$

Calculate the project's net present value $($NPV$),$ assuming a discount rate of $10\%$ over five years. Discuss whether the investment is financially viable.

 

Answer rating: 100% (QA)

To calculate the net present value NPV of the project we need to discount the projected annual reven... View the full answer