Question: The following table shows the expected cash flows from a project. There are no cash flows beyond year 4. The cost of capital is 7%.

The following table shows the expected cash flows from a project. There are no cash flows beyond year 4. The cost of capital is 7%.

Calculate the projects NPV.

Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to nearest whole number.

Calculate the economic rent in year 1.

Note: Do not round your intermediate calculations. Enter your answer in thousands rounded to 2 decimal places.

Cash flows ($000s)
C0 C1 C2 C3 C4
380 128 135 130 125

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