1. An investment of $83 generates after-tax cash flows of $42.00 in Year 1, $66.00 in Year 2, and $127.00 in Year 3. The required rate of return is 20 percent. The net present value is

1. Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

YearProject

0($11,368,000)

1$2,187,590

2$3,787,552

3$3,225,650

4$4,115,899

5$4,556,424