Hello,

Can you please help me understand what an analysis looks like to calculate the present net value and talk through whether it would be a good investment for the following scenario?

A company is thinking about building a new pier which will cost $280,000. The company expects to get 5 years of use out of the pier, after which it will be sold for $150,000. The company estimates that there will be annual cash flows of $55,000 resulting from the new pier. Their borrowing rate is 8% and it cost of capital is 10%.

Thank you