Your firm is considering a new project. The firm is 100% equity financed, and you believe the project will have about the same level of risk as the firm. You know that your firm has a beta of 1.4, the risk-free rate is 2.4 percent, and you expect the market return to be 10.0 percent. You have the following cash flow estimates, quoted in nominal dollars.
Year Nominal Dollars
0 $(35,000.00)
1 $12,500.00
2 $15,000.00
3 $17,000.00
What is the NPV of the project?