Basic Net Present Value Analysis

recovered at the end of the $7$ years.

On the positive side, Jonathan estimates that the new process will save $$450,000$ per year in environmental costs $($fines and cleanup costs avoided$).$ The cost of capital is $10\%.$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

X$$

Open spreadsheet

Required:

Two present value tables are provided: Present Value of a Single Amount and Present Value of an Annuity. Use them as directed in the problem requirements,

Schedule of Cash Flows

The NPV of the project is

x$.$