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Suppose ABC Telecom Inc. s CFO is evaluating a project with the following cash inflows. She does not know the project s initial cost; however,

Suppose ABC Telecom Inc.s CFO is evaluating a project with the following cash inflows. She does not know the projects initial cost; however, she does know that the projects regular payback period is 2.5 years.
Year Cash Flow
Year 1 $300,000
Year 2 $450,000
Year 3 $475,000
Year 4 $500,000
If the projects weighted average cost of capital (WACC) is 10%, what is its NPV?

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