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Year 0:CF = -165,000 Year 1:CF = 63,120; NI = 13,620 Year 2:CF = 70,800; NI = 3,300 Year 3:CF = 91,080; NI = 29,100

Year 0:CF = -165,000

Year 1:CF = 63,120; NI = 13,620

Year 2:CF = 70,800; NI = 3,300

Year 3:CF = 91,080; NI = 29,100

Average Book Value = 72,000

Your required return for assets of this risk is 12%.

Calculate NPV

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