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You are considering an investment opportunity with the following costs and benefits. The applicable interest rate for this investment opportunity is 5% (effective annual rate).

You are considering an investment opportunity with the following costs and benefits. The applicable interest rate for this investment opportunity is 5% (effective annual rate). Calculate the NPV of this investment opportunity.

Year 0 1 2 3 4 5 6
Cost $ (10,000) $ (5,000) $ (1,000) $ - $ - $ - $ -
Benefits $ - $ - $ 5,000 $ 7,500 $7,500 $ 5,000 $ 1,000

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