MGT 4143 – A firm is considering improving the ways customers and employees
MGT 4143 – A firm is considering improving the ways customers and employees
Subject: Business   / Finance
Question
A firm is considering improving the ways customers and employees interact with its Web site, which will cost $40,000 for design and maintenance. The free cash flows resulting from the project are provided in the table below:
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Free cash Flow
Initial outly -40,000
Inflow year 1 17,000
Inflow year 2 16,000
Inflow year 3 15,700
The required rate of return is 13%. What is the net present value?