Daniel's market is considering a project with an initial cost of $176,500. the project will not produce any cash flows for the first three years. starting in year 4, the project will produce cash inflows of $127,500 a year for three years. this project is risky, so the firm has assigned it a discount rate of 17 percent. what is the project's net present value?

NPV = -$601.026

Explanation:

Using a financial calculator , you can solve this question with the following inputs and using the CF function. I'll be using TI BA II plus financial calculator;

After keying in each CF , press ENTER and scroll down twice before keying in the next cashflow;

CF0= -176,500

CF1= 0

CF2=0

CF3 =0

CF4 =127,500

CF5= 127,500

CF6 = 127,500

then press "NPV" button, then I = 17 and press CPT.

Therefore NPV = -$601.026

answer; the nav calculated at the market close at 4: 00 pm new york time;