What is the net present value of your proposed expansion

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Reference no: EM132040939

1. Nano Specialist is considering an upgrade project. The estimated cash flows from the upgrade project appear below. What is the project's payback period? Note that year 0 and year 1 cash flows are negative. (Answer in years, round to 2 places)

Year 0 cash flow = -81,000

Year 1 cash flow = -41,000

Year 2 cash flow = 30,000

Year 3 cash flow = 25,000

Year 4 cash flow = 29,000

Year 5 cash flow = 24,000

Year 6 cash flow = 30,000

Year 7 cash flow = 43,000

2. What is the net present value (NPV) of your proposed expansion into the Canada? Assume that the cash flows after year 0 occur at the end of each year. The required rate of return is 20.0%. (Round to nearest penny)

Year 0 cash flow = -900,000

Year 1 cash flow = -130,000

Year 2 cash flow = 390,000

Year 3 cash flow = 410,000

Year 4 cash flow = 360,000

Year 5 cash flow = 450,000

Reference no: EM132040939

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