Question: Hello, Can you please help me understand what an analysis looks like to calculate the present net value and talk through whether it would be

Hello,

Can you please help me understand what an analysis looks like to calculate the present net value and talk through whether it would be a good investment for the following scenario?

A company is thinking about building a new pier which will cost $280,000. The company expects to get 5 years of use out of the pier, after which it will be sold for $150,000. The company estimates that there will be annual cash flows of $55,000 resulting from the new pier. Their borrowing rate is 8% and it cost of capital is 10%.

Thank you

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