What is the net present value of a project with the followin

What is the net present value of a project with the following cash flows and a required return of 12%?
  

  

Year Cash Flow 0 $28,900 $12.450 2 $19.630 3 2,750

Solution

Net present value is the total of present values of all cash flows.

Particulars	Year 0	Year 1	Year 2	Year 3
Cash flow	-28900	12450	19630	2750
Present value factor @12%	1	0.892857	0.797194	0.71178
Present value	-28900	11116.07	15648.92	1957.396
Net present value	-177.617