MUST SHOW ON A FINANCIAL CALCULATOR

MUST SHOW ON A FINANCIAL CALCULATOR

MUST SHOW ON A FINANCIAL CALCULATOR

MUST SHOW ON A FINANCIAL CALCULATOR

The answer is already provided.

Also, consider that the $10 million that was already paid is a sunk cost and could possibly be ignored for this calculation.

A company just paid $10 million for a feasibility study. If the company goes ahead with the project, it must immediately spend another $77,463,150 now, and then spend $20 million in one year. In two years it will receive $80 million, and in three years it will receive $90 million. If the cost of capital for the project is 11 percent, what is the project's NPV? 35,255,850.96