Question: Net present value (IP Y ) for the project business case (see In Appendix Section) Summary of NPV results NPV is the difference between the


Net present value (IP Y ) for the project business case (see In Appendix Section) Summary of NPV results NPV is the difference between the sum of the project's future cash flow present values and the initial project's cost. The formula for calculating NPV is: NPV = cash flows PV- PV of cash outflows. To select the project to proceed with, the NPV method must result in NPV greater than zero and the project is rejected if the NPV is less than zero. The firm's value rises by the project's NPV. The current NPV value at 10% interest rate (refer to Appendix) is $225,789.6 and at 8% interest rate is at $252,067.9. Both of these numbers are above zero and add value to this project
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