Maud'Dib Intergalactic has a new project available on Arrakis. The cost of the project is $32,000 and it will provide cash flows of $16,600, $21,300, and $18,600 over each of the next three years, respectively. Any cash earned in Arrakis is "blocked" and must be reinvested in the country for one year at an interest of 2 percent. The project has a required return of 7.7 percent. 

What is the project's NPV?

Answer rating: 100% (QA)

To calculate the net present value NPV of the project we need to discount the cash flows to their pr... View the full answer