. Compute the Net Present Value on a project with cash flows of:

TIME CASH FLOWS

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0 -$40,000

1 +$6500

2 +$6500

3 +$6500

4 +$6500

5 +$6500

6 +$6500

7 +$6500

8 +$6500

9 +$6500

10 +$6500

Assume an interest rate of 17%.

Assume TIME 0 is today (with a cash flow of -$40,000), TIME 1 is one year for today (with a cash flow of +$6,500), etc. (NOTE: The TIME 0 cash flow is negative because it is an investment today for future positive cash flows.)