HW 6B

Question 2

Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 6.89 percent. The initial outlay for the project is $441,340. The project will produce the following after-tax cash inflows of

Year 1: 134,724

Year 2: 23,839

Year 3: 3,641

Year 4: 125,818

Round the answer to two decimal places.

Answer: