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Given the following attributes of an investment project with a five-year life: investment outlay. year 0 $5,000; after-tax cash inflows. year 1, $800; year 2,
Given the following attributes of an investment project with a five-year life: investment outlay. year 0 $5,000; after-tax cash inflows. year 1, $800; year 2, $900; year 3, $1,500; year 4, $1,800; and year 5 $3,200.
Use the built-in NPV function in Excel to estimate the NPV of this project. Round to the nearest whole dollar. Assume an after-tax discount rate of 12.0%.
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