Calculate the net present value for this proposed project

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Reference no: EM131570293

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

Suppose that the appropriate discount rate for this project is 5.4%, compounded annually.

Calculate the net present value for this proposed project.

Reference no: EM131570293

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