Hello tutor,

Northern Track is developing a special vehicle for Arctic exploration. The development requires investments [outlays] of $50,000 in year 1, $40,000 in year 2, and $30,000 in year 3. Net returns [inflows] starting at year 4 are expected to be $27,000 per year for the next 12 years. If the company requires a rate of return of 12%, calculate the net present value of the project.

Looking forward for your help.Thank you.