Computing net present value of project


Assignment:

A company would like to invest in a project. The investment cost is $80,000 at the beginning of the first period, $70,000 more at the beginning of the second period, and $60,000 more at the beginning of the fourth period. The project has a 10-period useful life. The cash inflows at the end of period 5 through period 10 are $25,000, $60,000, $100,000, $120,000, $130,000, and $160,000, respectively. The cost of capital in period 1 through period 10 is 12%.

The net present value of the project is______$

Use at least 6 decimal places. Do not use any comma in your answer. You must show your calculation steps clearly.

Provide complete and step by step solution for the question and show calculations and use formulas.

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Operation Management: Computing net present value of project
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