A project costs $1.8 million today to get started and will produce after-tax cash flows of -$200,000, $0, $200,000, $400,000 in years 1,2,3,4. After year 4 the cash flows will increase by 3% per year forever. What is the NPV of the project if the discount rate is 15%?
- $89,035
- $746,523
- $349,311
- $217,809
- $367,610