Problem:
Coughlin Motors is considering a project with the following expected cash flows:
- NINV=$700millin
- NCF1==$200million
- NCF2=$370million
- NCF3=$225million
- NCF3=$700millin
If the cost of capital is 10% and the risk free rate if interest is 5%, what is the project's payback period?
Required:
Question: Calculate the project's net present value(NPV)
Note: Show supporting computations in good form.