Calculate the net present value of the software project

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Reference no: EM13903295

Computing net present value. Megatech, a computer software developer, is considering a software development project that requires an initial investment of $200,000 and subsequent investments of $150,000 and $100,000 at the end of the first and second years. Megatech expects this project to yield annual after-tax cash inflows for six more years: $90,000 at the end of each year for the third through eighth years. Megatech's after-tax cost of capital is 10 percent.

Calculate the net present value of this project.

Reference no: EM13903295

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