Question: A project manager is using the net present value method to make the final decision on which project to undertake. The company has a 15%

  1. A project manager is using the net present value method to make the final decision on which project to undertake. The company has a 15% required rate of return and expects a 5% rate of inflation for the following four years. What is the NPV of a project that has cash flows as shown in the table? show workings.

Year Cash Flow
0 -$350,000
1 $50,000
2 $80,000
3 $100,000
4 $150,000

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