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.