Question: ABS Ltd starts a new project that has a initial investment of $1,900,000, The estimated life of the project is 10 years. The market rate
ABS Ltd starts a new project that has a initial investment of $1,900,000, The estimated life of the project is 10 years. The market rate of return is 7%.
| Year | Annual Profits |
| 1 | $100,000 |
| 2 | $200,000 |
| 3 | $360,000 |
| 4 | $480,000 |
| 5 | $510,000 |
| 6 | $600,000 |
| 7 | $590,000 |
| 8 | $300,000 |
| 9 | $250,000 |
| 10 | $250,000 |
Calculate the Net Present Value. (Show your calculations and formulas used)
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