What is the expected npv of project

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Reference no: EM131501150

Fethe's Funny Hats is considering selling trademarked, orange-haired curly wigs for University of Tennessee football games. The purchase cost for a 2-year franchise to sell the wigs is $20,000. If demand is good (40% probability), then the net cash flows will be $22,000 per year for 2 years. If demand is bad (60% probability), then the net cash flows will be $7,000 per year for 2 years. Fethe's cost of capital is 11%. Do not round intermediate calculations.

What is the expected NPV of the project? A negative value should be entered with a negative sign. Round your answer to the nearest dollar.

Reference no: EM131501150

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