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A company is planning a new investment project which is expected to yield cash inflows of $285,000 per year in Years 1 through 3, $250,000 per year in Years 4 through 8, and $198,000 in Years 9 through 12. This investment will cost the company $1,000,000 today (initial outlay). We assume that the firm's cost of capital is 7.8%.

(1) Draw a time line to show the cash flows of the project.

(2) Compute the project

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Tod Thiel
Tod ThielLv2
19 Oct 2019
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Please show how you got answer. I am trying to understand how this is found.

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