Calculate the net present value of the project

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Reference no: EM132152549

Valotta Corporation has provided the following data concerning an investment project that it is considering:

The working capital would be released for use elsewhere at the end of the project.

Initial investment $690,000

Working capital $70,000

Annual cash flow $283,000 per year

Salvage value at the end of the project $21,000

Expected life of the project 4 years

Discount rate 11%

Required:

Calculate the net present value of the project and decide whether or not the company should make this investment. Please show all work using the format presented in class.

Reference no: EM132152549

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