Answer:
$20,996.49
Yes
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be found using a financial calculator.
Cash flow in year 0 = $-250,000
Cash flow in year 1 = $83,000
Cash flow in year 2 = $43,000
Cash flow in year 3 = $76,000
Cash flow in year 4 = $127,000
Cash flow in year 5 = $49,000
I = 12%
NPV = $20,996.49
The company should accept the project because the NPV is postive.
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
