In order to sell your current and future projects, you will need to perform basic cost-benefit analyses. If you would like for partial credit to be considered, please show your work where necessary.

1. Calculate the net present value of a software update project which requires an initial investment of $450,000 (year 0) and is expected to generate cash inflow of $200,000 each year for years 1-5. Assume that the salvage value of the project is zero. The target rate of return is 7% per year. Be sure to use time adjustments.

Year	Cash flow	Time-adjustment	NPV