1. An initial investment of $8,320,000 on plant and machinery is expected to generate net cash flows of $3,41000, $4,070,000, $5,824,000, and $2,065,000 at the end of first, second, third and fourth year respectively. At the end of the fourth year, the machinery will be sold for $900,000.

A) Calculate the Net Present Value of the investment if the discount rate is 18%. Round your answer to nearest thousand dollars (show your calculation). If you use the Excel, please capture a screen shot of your schedule and write down the formula you used. Are you going to invest in this project?

B) What are the strengths and weaknesses of the NPV? (20 points)