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Problem regarding the initial capital investment

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Question

Mutant & co. is currently considering investment in new project, which requires initial capital investment of $ 50, 00,000. Life period of this project is 5 years. Mutant & co. is expecting following cash inflow from the project.

Year

Cash inflow

1

$ 7,00,000

2

$ 8,00,000

3

$ 14,00,000

4

$ 16,00,000

5

$ 18,00,000

If required rate of return of Mutant & co. is 15% find out NPV of this project.

Reference no: EM131082531

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