What is the NPV of the project

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Question - A modification to an ERP project is expected to cost $50,000.  The benefits are shown for each of the first four years.

Year

1

2

3

4

Cash Flow

(5,000)

50,000

50,000

(25,000)

1. What is the NPV of the project if the required return is 14%?

2. What is the NPV of the project if the required return is 12% and the inflation is currently expected to be steady at 5% for the life of the project?

Reference no: EM132011292

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