Latway Company is considering opening a new sales territory.Management expects the initial investment to be $150,000 and subsequent investments of $100,000 and $50,000 at the end of the first and second years.Net cash flow from the sales territory is expected to yield after-tax cash inflow for 5 more years: $75,000 for the first two years and $60,000 for the remaining years.The company's cost of capital is 12 percent.Calculate the net present value of this project.

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The Answer of Latway Company is considering opening a new sales territory.Management expects the initial investment to be $150,000 and subsequent investments of $100,000 and $50,000 at the end of the first and second years.Net cash flow from the sales territory is expected to yield after-tax cash inflow for 5 more years: $75,000 for the first two years and $60,000 for the remaining years.The company's cost of capital is 12 percent.Calculate the net present value of this project.

Latway Company Is Considering Opening a New Sales Territory