A firm is evaluating a four-year project that requires an investment today of $2

Business Apr 19, 2023

A firm is evaluating a four-year project that requires an investment today of $2.4 million. In addition, the project will require a one-time injection of working capital of $200,000 today that will be recovered at project end. The project is estimated to provide operating cash flows of $664,000 each year for the four years. The firm's discount rate is 10%.

What is the NPV of the project?