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Consider a project that will generate revenues at the ned of the first and second years. Initial costs and expenses are $3000. In addition, the

Consider a project that will generate revenues at the ned of the first and second years. Initial costs and expenses are $3000. In addition, the projects cost of capital is 7%.

You are given the following information.

Scenario 1 2 3 4
First Year Revenues $1100 $1500 $1800 $1200
Second Year Revenues $2900 $2500 $2200 $2800

Determine the projects net present value of the worst scenario.

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