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Your boss asks you to do a quick analysis of whether it makes sense to undertake a proposed project. The initial investment in the project
Your boss asks you to do a quick analysis of whether it makes sense to undertake a proposed project. The initial investment in the project is $22,000 and the project will return cash flows of $5,000 per year for 5 years. Cost of capital is 5%. Determine Project Net Present Value (NPV) Should your Company go forward with the project? Please explain why or why not. Show all work. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 NPV=________________
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