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Your firm is considering a project that requires in investment of $153,000 today. It is projected...

Your firm is considering a project that requires in investment of $153,000 today. It is projected to pay $44,000 at the end of the year and at the end of the next two years after that. Four years from today, the project is projected to pay $71,000. If the appropriate discount rate to value this project is 7% per year, what is the NPV?Round and express your answer to the nearest whole dollar (i.e., nearest integer).

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Answer #1
Year Cash Flow PV Factor PV Of Cash Flow
a b c=1/1.07^a d=b*c
0 $   -1,53,000 1 $     -1,53,000.00
1 $        44,000 0.93457944 $           41,121.50
2 44000 0.87343873 $           38,431.30
3 $        44,000 0.81629788 $           35,917.11
4 $        71,000 0.76289521 $           54,165.56
NPV $                 16,635
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