I'm confused as to where to begin with this. This one is the most similar to the question I am trying to figure out.

the NPV Of BILLS Propos You are asked to evaluate the following project for a corporation with profitable ongoing operations . The required investment on January 1 of this year is $ 56, 000. The firm will depreciate the investment at a CCA rate of 20 percent . The firm is in the 40 percent tax bracket . The price of the product on January 1 will be $320 per unit . That price will stay constant in real terms . Labour costs will be $14 per hour on January 1 . They will increase at 1 percent per year in real terms . Energy costs will be $7.35 per physical unit on January 1 ; they will increase at 2.5 percent per year in real terms . The infla - tion rate is 6 percent . Revenue is received and costs are paid at year-end : Year 1 Year 2 Year 3 Year 4 Physical production , in units 100 200 250 100 Labour input , in hours 2 , 200 2 , 200 2 , 200 2 , 200 Energy input , physical units 180 180 180 180 The risk - free nominal discount rate is 7 percent . The real discount rate for costs and revenues is 4 percent . Calculate the NPV of this project