Question: Your company is considering a project with an initial outlay of $10,000 in year zero and the following cash flows over the next 4 years:

Your company is considering a project with an initial outlay of $10,000 in year zero and the following cash flows over the next 4 years:

Year

Cash flow

1

2,000

2

3,000

3

4,000

4

5,000

Assuming cost of capital is 11%:

3) The project's Net Present Value is:

355.60

455.09

500.00

288.35

410.00

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