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Green Compost Inc.'s current operations will generate cash flows of $100,000 in year one, $115,000 in year two, and $125,000 in year three. The company
Green Compost Inc.'s current operations will generate cash flows of $100,000 in year one, $115,000 in year two, and $125,000 in year three. The company is considering a new investment, which requires an immediate cash outlay of $300,000. With the new investment, the company can instead expect to have cash flows of $250,000 per year for the next three years. The appropriate discount rate is 15 percent. Assume no taxes. The NPV of the new investment is closest to: O $270,806.28 O $65,439.36 O $14,703.71 O $256,107.57
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