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NorTell Inc. considers a new project that has the following cash flow and the required rate of return (WACC) data. What is the project's NPV?

NorTell Inc. considers a new project that has the following cash flow and the required rate of return (WACC) data. What is the project's NPV?

Required Rate:

24.75%

Year

0

1

2

3

Cash flows

-$1,000

$500

$500

$500

1.

-$18.74

2.

-$19.56

3.

-$18.54

4.

-$20.37

5.

-$15.28

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