Latway Company is considering opening a new sales territory. Management expects the initial investment to be $150,000 and subsequent investments of $100,000 and $50,000 at the end of the first and second years. Net cash flow from the sales territory is expected to yield after-tax cash inflow for 5 more years: $75,000 for the first two years and $60,000 for the remaining years. The company's cost of capital is 12 percent. Calculate the net present value of this project.

Answer rating: 100% (QA)

T he net present value of this project is 2003077 Explanation NPV ... View the full answer