Your firm is looking to make a major capital investment. Good financial analysis produced the cash flows illustrated in the table below. The cash outflows represent estimated costs, and the cash inflows represent estimated benefits. Assume all cash flows are received or are paid at the end of the year.
If your company's opportunity cost of capital is 15%, what is the net present value of this capital investment?
Now 2016 2017 2018 2019 2020
Cash Inflow $0 $415600 $475000 $625000 $625000 $600000
Cash Outflow $500000 $500000 $500000 $0 $300000 $0