BVC Limited is investing £900,000 into a new project today. The project will last for five years. At the end of year 3 of the project's life, half of the assets will be sold for £200,000. At the end of the five years, the remaining project assets will be sold for £50,000. The net cash inflows from the project in years 1 to 5 are expected to be £180,000, £240,000, £280,000, £320,000 and £220,000. BVC's cost of capital is 9%. What is the net present value of this project?

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The Answer of BVC Limited is investing £900,000 into a new project today. The project will last for five years. At the end of year 3 of the project's life, half of the assets will be sold for £200,000. At the end of the five years, the remaining project assets will be sold for £50,000. The net cash inflows from the project in years 1 to 5 are expected to be £180,000, £240,000, £280,000, £320,000 and £220,000. BVC's cost of capital is 9%. What is the net present value of this project?

BVC Limited Is Investing £900,000 into a New Project Today