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A firm is seeking funding for a 5 year project they wish to undertake. As a loans officer, you request data from the firm indicating
A firm is seeking funding for a 5 year project they wish to undertake. As a loans officer, you request data from the firm indicating the net cash flow they anticipate over the life of the project. The estimated upfront cost is $200 000. In year 1, estimated net revenue is $50 000. Net revenue is estimated to grow 5% in each subsequent year up to year 5. Assuming a discount rate of 10%, calculate the net present value for this project.
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