Question: Question Content Area Dickerson Co. is evaluating a project requiring a capital expenditure of $810,000. The project has an estimated life of 4 years and

Question Content Area

Dickerson Co. is evaluating a project requiring a capital expenditure of $810,000. The project has an estimated life of 4 years and no salvage value. The estimated net income and net cash flow from the project are as follows:

Year Net Income Net Cash Flow
1 $75,000 $280,000
2 100,000 300,000
3 109,000 200,000
4 36,000 120,000
Total $320,000 $900,000

The company's minimum desired rate of return is 12%. The factors for the present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years are 0.893, 0.797, 0.712, and 0.636, respectively.

Determine the net present value. Enter negative value as a negative number. fill in the blank 1 of 1$

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