Determine the NPV for the Electro bicycle project. Use the annual project cash flow from the table. For the required rate of return use 25%.

Table 1 Projected Electrobicycle Financial Projection Numbers in $000's Revenues After-tax earnings After-tax earnings Plus: Depreciation Less: Cost of plant, equipment Less: Working capital Plus: Recovery of working capital Plus: Salvage value Annual project cash flow Note: n/a = not applicable Today ($2,000) ($1,000) Year 1 $1,000 ($500) ($500) $400 $0 ($200) n/a n/a ($300) Year 2 $1,500 $100 Project Cash Flow $100 $400 $0 ($200) n/a n/a $300 Year 3 $3,000 $300 $300 $400 $0 ($200) n/a n/a $500 Year 4 $6,000 $600 $600 $400 $0 ($200) n/a n/a $800 Year 5 $12,000 $1,200 $1,200 $400 $0 ($200) $2,000 $600 $4,000