Jess has a project idea. She says, "you will make $500,000 in revenues in the...
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Accounting
Jess has a project idea. She says, "you will make $500,000 in revenues in the next five years." You want to see the Net Present Value of those future cash flows before you decide the investment is worth it. You will run the NPV on the figures with a discount rate of 8%, if it comes back positive we will move forward.
What do you find? Do you move forward? What was the final NPV? Please show work.
Total Investment = $500,000
Annual Cash Flows = $120,000
Discount Rate = 8%
Time Periods = 5
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