Compute the amount of initial investment in the project.

Question

A project has an initial outlay of $1,567. The project will generate annual cash flows of $443 over the 5-year life of the project and terminal cash flows of $345 in the last year of the project. If the required rate of return on the project is 19%, what is the net present value (NPV) of the project? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

Answer 1

Question

Chapter 26, Problem 3CMA

To determine

Compute the amount of initial investment in the project.

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