What is the npv of the project for cortez art gallery

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Question 1: Cortez Art Gallery is adding to its existing buildings at a cost of $2 million. The gallery expects to bring in additional cash flows of $600,000, $800,000, and $1,000,000 over the next three years. Given a required rate of return of 16 percent, what is the NPV of this project? Show your work.

Initial investment = 2million

Cash flow year 1 = 600,000

Cash flow year 2 = 800,000

Cash flow year 3 = 1,000,000

Required rate of return = 16%

Years = 3

Net Present Value = a method of evaluating a capital investment project that measures the difference between its cost and the present value of its expected cash flows

Reference no: EM132597255

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