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A project costs $100,000. The project has the following incremental cash flows: Year 1 = $20,000 Year 2 = $30,000 Year 3 = $35,000 Year
A project costs $100,000. The project has the following incremental cash flows:
Year 1 = $20,000
Year 2 = $30,000
Year 3 = $35,000
Year 4 = $40,000
If the discount rate is 7%, what is the projects net present value? Should the firm accept the project? Show your work.
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