Problem: Your firm is looking at a new investment opportunity, Project Alpha, with net cash flows as flows:
Net Cash Flows
Project Alpha
Initial Cost at T 0(Now ($10,000)
Cash inflow at the end of year 1 $6,000
Cash inflow at the end of year 2 $4,000
Cash inflow at the end of year 3 $2,000
Calculate project Alphas Net Present Value (NPV), assuming your firms required rate of return is 10%.