Evaluate the net present value

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A $350,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows:

Year Net Cash Flow

1 $150,000

2 130,000

3 104,000

4 90,000

Question 1: The minimum desired rate of return for net present value analysis is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. Determine the net present value.

Reference no: EM132537458

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