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What is the npv and pb of project

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Your firm is trying to decide whether or not to invest in a new project opportunity based on the following information. The initial cash outlay will total $250,000 over two years. The firm expects to invest $200,000 immediately and the final $50,000 in one year's time. The company predicts that the project will generate a stream of earnings of $50,000, $100,000, $200,000 and $75,000 per year, respectively, starting in Year 2. The required rate of return is 15%, especially 1/(1+0.15)1=0.8696, 1/(1+0.15)2=0.7561, 1/(1+0.15)3=0.6575, 1/(1+0.15)4=0.5718, 1/(1+0.15)5=0.4972, 1/(1+0.15)6=0.4323 (13points).

1) Please fill in the blanks in the form of a table(see Table 1).

2) What is the NPV and PB of this project?

3) Should you invest in this project?

Find attached a table of cash flows and NPV

Reference no: EM132485303

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