Determine the net present value for heedy inc

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Heedy Inc. is considering a capital investment proposal that costs $460,000 and has an estimated life of four years, and no residual value. The estimated net cash flows are as follows:

Year                     Net Cash Flow

1                         $195,000

2                      160,000

3                      120,000

4                          80,000

Question 1: The minimum desired rate of return for net present value analysis is 10%. The present value of $1 at compound interest rates of 10% for 1, 2, 3, and 4 years is 0.909, 0.826, 0.751, and 0.683, respectively. Determine the net present value. Enter negative values as negative numbers

Reference no: EM132612236

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