Current Attempt in Progress

When Edward first pitched a new product idea to his manager, it was very well received because he did such a thorough job of researching and analyzing it$.$ He presented a comprehensive forecast that included both possible and probable levels of returns to be earned from this investment. As a result, the company handed over the money and put Edward in charge of the project. The compary planned to evaluate the investment based on his "probable" forecast.

One year into the project, money started getting tight in other divisions of the company. Pressure was on for Edward to provide some proof that this $3-$year investment was starting to work. As of the end of that first year, $$12\mathrm{.}000$ in operating costs and $$12\mathrm{.}000$ in new operating eash inflows $($both reflect after tax amounts$)$ had been realized.

Edward had collected the following information but clearly still only had projections for the remaining $2$ years of this project.

$\backslash$table$[[$Estimated $($and actual$)$ initial project investment,$$14,500$

$($a$)$

Your answer is incorrect.

What was Edward's initial projection for the NPV of the cash flows at this probable level of activity, assuming an $8\%$ discount rate? Tax effects, including any depreciation tax shield, have already been accounted for in the above amounts. $($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $2$ decimal places e$.$g$.5,125\mathrm{.}36.$ Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

NPV $ $$

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