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Calculate the net present value for the proposed project

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Managers of CVS Pharmacy are considering a new project. This project would be a new store in Odessa, Texas. They estimate the following expected net cash flows if the project is adopted.

Year 0: ($1,250,000)
Year 1: $200,000
Year 2: $500,000
Year 3: $400,000
Year 4: $300,000
Year 5: $200,000

Question 1: Suppose that the appropriate discount rate for this project is 7%, compounded annually. Calculate the net present value for this proposed project.

Reference no: EM132873350

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