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Several companies, including Indigo River Industrial and Red Royal Consulting, are considering project A, which is...

Several companies, including Indigo River Industrial and Red Royal Consulting, are considering project A, which is believed by all to have a level of risk that is equal to that of the average-risk project at Indigo River Industrial. Project A is a project that would require an initial investment of 4,700 dollars and then produce an expected cash flow of 5,824 dollars in 4 years. Project A has an internal rate of return of 5.51 percent. The weighted-average cost of capital for Indigo River Industrial is 8.78 percent and the weighted-average cost of capital for Red Royal Consulting is 10.21 percent. What is the NPV that Red Royal Consulting would compute for project A?

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