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Oriole Compacts will generate cash flows of $29,100 in year 1, and $66,100 in year 2. However, if it makes an immediate investment of $19,200,
Oriole Compacts will generate cash flows of $29,100 in year 1, and $66,100 in year 2. However, if it makes an immediate investment of $19,200, it can instead expect to have cash streams of $53,000 in total in year 1 and $63,000 in year 2. The appropriate discount rate is 9 percent.
(a) Calculate the NPV of the proposed project. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answer to 2 decimal places, e.g. 25.25.)
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