1. What is the NPV of a $45,000 project that is expected to have an...

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1. What is the NPV of a $45,000 project that is expected to have an after-tax cash flow of $14,000 for the first two years, $10,000 for the next two years, and $8,000 for the fifth year? Use a 8% discount rate. Would you accept the project? Hint; After-tax Year Cash Flow 1 $14,000 2 14,000 3 10,000 4 10,000 5 8,000 Present value of cash flows Initial outlay Net present value PVIF at 8% .? ? ? ? ? Present Value $? ? ? ? ? $ ? $ 45,000 $

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