Is this right? To determine the Net Present Value (NPV) of the Electrobicycle project, the formula below is applied: = ( 1 + ) 0 NPV=(1+r)tCtC0 Where: Ct = Cash flow in year t r = Required rate of return (5% or 0.05, based on my birth date) 0 C0 = Initial investment cost ($3,000,000) Using the project cash flows from the provided table, the NPV calculation is as follows: = 300 ( 1.05 ) 1 + 300 ( 1.05 ) 2 + 500 ( 1.05 ) 3 + 800 ( 1.05 ) 4 + 4000 ( 1.05 ) 5 3000 NPV=(1.05)1300+(1.05)2300+(1.05)3500+(1.05)4800+(1.05)540003000 = 300 1.05 + 300 1.1025 + 500 1.1576 + 800 1.2155 + 4000 1.2763 3000 NPV=1.05300+1.1025300+1.1576500+1.2155800+1.276340003000 = 285.71 + 272.23 + 431.89 + 658.35 + 3133.04 3000 NPV=285.71+272.23+431.89+658.35+3133.043000 = 1 , 210.80 NPV=1,210.80 Since the NPV is positive ($1,210,800), the project is financially viable and should be considered for investment. Explanation of Working Capital Investments Working capital investments are deducted annually from the project's cash flows because they represent necessary expenditures for operational needs, such as inventory, labor, and other short-term assets. These investments ensure smooth production and sales operations. However, since all working capital is recovered at the end of the project, a $2,000,000 inflow is recorded in Year 5. Meaning of the Required Rate of Return The required ra