Question: A firm is considering a three-year project with an initial investment requirement I = CF 0 = $8,000 and the following three cash inflows: CF

A firm is considering athree-year projectwith an initial investment requirementI = CF₀= $8,000and the following three cash inflows:

CF₁= $3,180.000

CF₂= $3,370.800

CF₃= $3,573.048

This project will bereplicable forever!(Note:This means that the project will be restarted at the end of year 3, year 6, year 9, etc. forever.)The risk-adjusted discount rate for this project isk = 6 percent.Calculate the Net Present Value of this project, denotedNPV (3,).

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