Question: Given that the initial investment for a new project is $500,000. The incremental cashflows for the 3-year project is as follows: Year 1: $200,000 Year

Given that the initial investment for a new project is $500,000. The incremental cashflows for the 3-year project is as follows:

Year 1: $200,000

Year 2: $180,000

Year 3: $170,000

The new machines can be sold off for $20,000 at the end of the project. The cost of capital for the company is 2%. What is the present value of the cashflow for year 3?

		$179,041
		$48,130
		$29,284
		$160,195

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