Question: The top project that is being considered will cost $1,000,000 and promises to pay $500,000 in year one, $400,000 in year two, $300,000 in year

The top project that is being considered will cost $1,000,000 and promises to pay $500,000 in year one, $400,000 in year two, $300,000 in year three and $100,000 in year four. This project will cease to exist with no salvage value at end of year four. So, the cash flow would look like the following: Year CF ($ in 000s) 0yr, -1,000 CF (Initial Outlay) 1yr, 500 CF, 2yr, 400 CF, 3yr, 300 CF, 4yr, 100 CF Using the cash-flows related to the top project Roberto is considering and 11.40% (WACC), what is the expected NPV for the project (in 000s)?

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