Calculate the net present value of project for gators inc

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Reference no: EM131079602

Computing net present value. Gators, Inc., is considering a project that requires an initial investment of $2,000,000 and that will generate the following cash inflows for the next five years:

Year

Cash Inflow at End of  Year

1

$300,000

2

400,000

3

800,000

4

800,000

5

600,000

Calculate the net present value of this project if Gator's cost of capital is

a. 12 percent.
b. 20 percent.

Reference no: EM131079602

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