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For the next four questions, consider the following setting: A project is expected to take 2 years to complete, with the first year costing $60,000

For the next four questions, consider the following setting:\ A project is expected to take 2 years to complete, with the\ first year costing

$60,000

and the second year costing\

$80,000

. Assume that these costs are incurred at the\ beginning of the respective years. Once completed (at the\ end of 2 nd year), the project is expected to generate a\ revenue stream of

$50,000

per year for the next 5 years\ (i.e., from year 3 thru year 7 inclusive). Assume that these\ revenues are realized at the end of the respective years.\ Question 6\ If the discount rate of

10%

is used, what is the net present\ value of the project? Round it to nearest integer, for\ instance, if the NPV is 2312.34, then write down 2312.

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For the next four questions, consider the following setting: A project is expected to take 2 years to complete, with the first year costing $60,000 and the second year costing $80,000. Assume that these costs are incurred at the beginning of the respective years. Once completed (at the end of 2nd year), the project is expected to generate a revenue stream of $50,000 per year for the next 5 years (i.e., from year 3 thru year 7 inclusive). Assume that these revenues are realized at the end of the respective years. Question 6 0/0.06pts If the discount rate of 10% is used, what is the net present value of the project? Round it to nearest integer, for instance, if the NPV is 2312.34 , then write down 2312

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