Problem: A project has an upfront cost of $21,300,000. It's estimated that the project will produce the following net cash flows:
Year Project Net Cash Flows
1 $13,000,000
2 $3,000,000
3 $7,200,000
a) What's the project's net present value when the cost of capital is 4%?
b) What's the project's net present value when the cost of capital is 11%?