Question: Please complete the problems below and show all work, please! 4. Sunrise Inc. is considering a capital investment proposal that costs $227,500 and has an
Please complete the problems below and show all work, please!
4. Sunrise Inc. is considering a capital investment proposal that costs $227,500 and has an estimated life of four years and no residual value. The estimated net cash flows are as follows:
| Year | Net Cash Flow |
| 1 | $97,500 |
| 2 | $80,000 |
| 3 | $60,000 |
| 4 | $40,000 |
The minimum desired rate of return for net present value analysis is 10%. The present value of $1 at compound interest rates of 10% for 1, 2, 3, and 4 years is .909, .826, .751, and .683, respectively. Determine the net present value.
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