Question $3$

You are considering the investment of $$3,000($today$)$ in a lemonade stand.

Also, you expect the stand to generate the following future cash flows:

At the end of year $1$:$$4,000$

At the end of year $2$:$$5,000$

At the end of year $3$:$$8,000$

At the end of year $4$:$$2,000$

What is the NPV $($Net Present Value$)$ of this project, if you require a $16\%$ rate of

return?

$($Answer to the nearest $$0\mathrm{.}01)$