The company has a project with a 5-year life that requires an initial investment of $200,000, and is expected to yield annual cash flows of $61,000. What is the net present value of the project if the required rate of return is set at 8%?

Calculation Steps

Present Value of an Annuity of $1 at Compound Interest.

Net Present Value =

(

?

x?

)

?

Note: Round your answer to the nearest whole dollar.

What NPV does the previous calculation yield?