Net Present Value Calculation

• Calculate the Net Present Value (NPV) for the project business case. (Use Microsoft Excel to derive the NPV assuming the data below
  • Purchase price of $400,000.
  • One-time project costs total of $100,000 spent in Year 0.
  • Net benefits after taxes of $150,000 per year for five years.
  • Salvage value for Year 6 and beyond of $400,000.)
• Summarize your results of NPV