What is the net present value of the following project


What is the net present value of the following project proposal’s estimated costs and benefits (show your work)? The estimation period is 3 years and the risk-free interest rate is 3%. In the first year of the project, there will be an investment of $400,000 in computers and other infrastructure. In the third year, an additional investment of $100,000 will be made in an additional large computer. Software licenses will cost $15,000 per year all three years. Salaries will cost $500,000 in year 1 and $80,000 each in years 2 and 3. There will be no revenue in year 1. Year 2 revenue will be $550,000, and year 3 revenue will be $800,000.   Based on your analysis, should this project be pursued?  

Request for Solution File

Ask an Expert for Answer!!
Operation Management: What is the net present value of the following project
Reference No:- TGS02211483

Expected delivery within 24 Hours