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What is the npv of the new investment

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Reference no: EM133004723

Green Compost Inc.'s current operations will generate cash flows of $100,000 in year one, $115,000 in year two, and $125,000 in year three. The company is considering replacing their current setup with a new investment, which requires an immediate cash outlay of $300,000. With the new investment, the company can instead expect to have cash flows of $250,000 per year for the next three years. The appropriate discount rate is 15 percent. What is the NPV of the new investment? Assume that there is no salvage value and no tax considerations.

Reference no: EM133004723

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