Problem:
Empire Industries is considering adding a new product to their lineup. This product is expected to generate sales for four years after which time the product will be discontinued.
Requirement:
Question: What is the project's net present value if the firm wants to earn a 13 percent rate of return?
Year. Cash Flow
0 --- -62,000
1 --- 16.500
2 --- 23,800
3 --- 27,100
4 --- 23,300
a. $3,505.52
b. $3,767.24
c. $4,312.65
d. $4,519.58
e. $4,902.71
Note: Please provide full description.