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You have been asked to determine the NPV of a project. The has a cost of $800. This cost is incurred at year O.

 

You have been asked to determine the NPV of a project. The has a cost of $800. This cost is incurred at year O. The expected cash flow in year 1 is $130. The expected cash flow in year 2 is $220. The expected cash flow in year 3 is $360 and the expected cash flow in year 4 is $500. The project's required rate of return is 7.50% compounded annually. What is the NPV (net present value) of the project?

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