Empire Industries is considering adding a new product to its lineup. This product is expected to...

Empire Industries is considering adding a new product to its lineup. This product is expected to generate sales for four years after which time the product will be discontinued. What is the project's net present value if the firm wants to earn a 13 percent rate of return?

YEAR	CASH FLOW ($)
0	-62,000
1	16,500
2	23,800
3	27,100
4	23,300

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Expert Solution

NPV is present value of cash flows less initial investment

NPV is 4312.65

jeff jeffy answered 1 year ago

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