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Wally Company is considering an investment opportunity with the following expected net cash inflows: Year 1, $265,000, Year 2, SI 60,000; Year 3. S95.000. The
Wally Company is considering an investment opportunity with the following expected net cash inflows: Year 1, $265,000, Year 2, SI 60,000; Year 3. S95.000. The company uses a discount rate of 5% and the initial investment is $370,000. (Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Calculate the NPV of the investment. Should the company invest in the project? Why or why not? Use the following table to calculate the net present value of the project. (Enter any factor amounts to three decimal places, XxxX) Net Cash PV Factor Present Years Inflow (1-5%) Value Present value of each year's inflow 1 (n 1) 2 (n 2) 3 (n 3) Total PV of cash inflows 0 Initial investment Net present value of the project Using the NPV as the basis of its decision, Wally Company consider the investment because its NPV is
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