Net present value​ calculation)  Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of ​$4,000,000 and would generate annual net cash inflows of ​$900,000 per year for 9 years. Calculate the​ project's NPV using a discount rate of 8 percent. If the discount rate is 8 ​percent, then the​ project's NPV is ​$ ?

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter12: Capital Investment Decisions
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 (Net present value​ calculation) 

Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of ​$4,000,000 and would generate annual net cash inflows of ​$900,000 per year for 9 years. Calculate the​ project's NPV using a discount rate of 8 percent.

If the discount rate is 8 ​percent, then the​ project's NPV is ​$ ?

 

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