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Anderson International Limited is evaluating a project in Erewhon. The project will create cash flows as listed in the table below. All cash flows will

Anderson International Limited is evaluating a project in Erewhon. The project will create cash flows as listed in the table below. All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are blocked and must be reinvested with the government for one year. The reinvestment rate for these funds is 10%. The required return is 15%. What is the project NPV?

Year Cash Flow
0 -500
1 243
2 125
3 266
4 121

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