Question: Acme Manufacturing is considering a project to replace a piece of manufacturing equipment. The cash flows associated with this project appear below. The firm discounts

Acme Manufacturing is considering a project to replace a piece of manufacturing equipment. The cash flows associated with this project appear below. The firm discounts project cash flows at 15%. Management requires payback within two years.

Year	Cash Flows
0	-$2,400,000
1	$2,000,000
2	$800,000
3	$200,000
4	$200,000
5	$200,000

Based on the information above, what is the Net Present Value (NPV) of this project?

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