Question $2$

A company is considering a $2-$year project with the following cash flows:

Initial investment: $$1000$

Cash inflow, year $1$: $$520$

Cash inflow, year $2$: $$900$

Salvage value, year $2$: $$230$

The company uses straight$-$line depreciation to depreciate the initial investment cost. In other

words, annual depreciation is $($initial investment $-$ salvage value$)/2.$ The company's discount

rate is $11\%.$

What is the Net Present Value of this project?

$($Use the present values tables above for any present value calculations. Don't round intermediate

calculations. Round your final answer to the nearest dollar.$)$