Dewey Co$.$ is considering investing in a new project that requires an initial

investment of $$100,000.$ The project is expected to generate cash flows of

$$25,000$ per year for the next $5$ years.

The company's cost of capital is $10\%.$ Dewey Co$.$ wants to determine the project$$s net present value $($NPV$)$ to decide whether

or not to invest.

a$.$ Calculate the present value of cash flows.

b$.$ Calculate the Net Present Value.

c$.$ Interpret the Results