Question: A project's estimated cash flows are summarized below: Year Cash Flow 0 ? 1 $500 2 $400 3 $600 4 $300 The project has a

A project's estimated cash flows are summarized below:

Year Cash Flow

0 −?

1 $500

2 $400

3 $600

4 $300

The project has a payback of 2.6 years. What is the project's net present value (NPV) if the cost of capital of the project is 10%? (Hint: You need to find the cash flow at Year 0 before you calculate NPV.)

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