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Acme General Stores is considering a project to open a new store in a rural town. The company will invest cash at the beginning install

Acme General Stores is considering a project to open a new store in a rural town. The company will invest cash at the beginning install and stock the store. Then the company marketing team and accountants forecast the net income for this new store based on the results of other stores opened previously in similar rural towns. The flowing values are the net cash inflow and outflows. Acme Corp uses a 15% rate of return. Calculate the Net Present Value for the project.

Initial Cash Outlay at beginning of project -355905
Income at end of first year -74989
Income at end of second year 159282
Income at end of third year 181381
Income at end of fourth year 225672
Income at end of fifth year 269096

Use the values from the table below to discount the net cash flow values. The answer is calculated on these discount factors, using the calculator NPV function may result in a slightly different number that the problem will not count as correct. Only round the final answer to the nearest whole dollar amount.

n 12% 13% 14% 15% 16%
1 year 0.8929 0.8850 0.8772 0.8696 0.8621
2 year 0.7972 0.7831 0.7695 0.7561 0.7432
3 year 0.7118 0.6931 0.6750 0.6575 0.6407
4 year 0.6355 0.6133 0.5921 0.5718 0.5523
5 year 0.5674 0.5428 0.5194 0.4972 0.4761

This problem is a variation of the example on page 286-287 Ch26

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