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Your company has asked you to perform an NPV analysis of a project that will cost $100,000. The company expects a rate of return of
Your company has asked you to perform an NPV analysis of a project that will cost $100,000. The company expects a rate of return of 10% on all it's projects. You expect this project will run for four years and have future cash flows of $20,000, $50,000, $50,000, and $25,000 starting in year 1. Calculate the NPV showing all math (place in a table). Work by hand (not with a software tool). How would you advise the company?
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