How to evaluate the net present value

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Heedy Inc. is considering a capital investment proposal that costs $460,000 and has an estimated life offour years, and no residual value. The estimated net cash ?ows are as follows:

Year           Net Cash Flow
1                $195,000
2                   160,000
3               120,000
4                  80,000

Question 1: The minimum desired rate of return for net present value analysis is 10%. The present value of $1 at compound interest rates of 10% for 1, 2, 3, and 4 years is 0.909, 0.826, 0.751, and 0.683, respectively. Determine the net present value. Enter negative values as negative numbers.

Reference no: EM132571920

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