Question: Suppose ABC Telecom Inc.s CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does

Suppose ABC Telecom Inc.’s CFO is evaluating a project with the following cash inflows. She does not know the project’s initial cost; however, she does know that the project’s regular payback period is 2.5 years.

Year	Cash Flow
Year 1	$300,000
Year 2	$425,000
Year 3	$500,000
Year 4	$400,000

If the project’s weighted average cost of capital (WACC) is 8%, what is its NPV?

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