You are considering a project that requires an initial investment of $98,000 with a cost of capital of 15%. You expect the project to have a five-year life, and produce cash flows of $19,000 in year 1, $32,000 in year 2, $64,000 in year 3, $26,000 in year 4 and $10,000 in year 5.

What is this project’s net present value?

Answer rating: 100% (QA)

To calculate the net present value NPV of the project we need to discount each cash flow back to the ... View the full answer