A firm is considering a project that has estimated cashflows

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A firm is considering a project that has the following estimated cashflows:

Increased sales to business of $160,000 for the next 5 years (starting in one year's time).

Increased costs of $20,000 for the next five years (starting in one year's time).

The initial capital expenditure required is $100,000, and salvage value at the end of 5 years is expected to be $30,000.

Cost of the feasibility study is $10,000.

If the firm is facing a discount rate of 11%, what is the NPV of this project?

Ignore taxes.

Reference no: EM131556640

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