In: Finance
Year 0 | Years 1-12 | |
Investment | - $5,400,000 | |
| $ 16,000,000 | |
| 13,000,000 | |
| 2,000,000 | |
| 450,000 | |
| 550,000 | |
| 220,000 | |
| 330,000 | |
| 780,000 | |
Net cash flow | -$5,400,000 | $ 780,000 |
Recalculate cash flow as shown from above table if variable costs are 83 percent of sales. Confirm that NPV will be - $788,000.