Falcon Company's most recent capital expenditure project will require an initial investment of $600,000 and is expected to generate the following cash flows:
Year 1 $100,000
Year 2 $250,000
Year 3 $250,000
Year 4 $200,000
Year 5 $100,000
Required:
If the required rate of return is 20% and taxes are ignored,what is the project's net present value?

Question

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The Answer of Falcon Company's most recent capital expenditure project will require an initial investment of $600,000 and is expected to generate the following cash flows:
Year 1 $100,000
Year 2 $250,000
Year 3 $250,000
Year 4 $200,000
Year 5 $100,000
Required:
If the required rate of return is 20% and taxes are ignored,what is the project's net present value?

Falcon Company's Most Recent Capital Expenditure Project Will Require an Initial