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.

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

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