Problem:
Haithcock Grocery is considering a project that has an up-frontcost of $X. The project will generate a positive cash flow of$75,000 a year. Assume that these cash flows are paid at the end ofeach year and that the project will last for 20 years. The projecthas a 10 percent cost of capital and a 12 percent internal rate ofreturn (IRR).
Required:
Question: What is the project's net present value(NPV)?
Note: Please explain comprehensively and give step by step solution.