What is the Net Present Value, business and finance homework help
1.Calculate the NPV of a project with thefollowing cash flows and a 12% discount rate:Year 0 1 2 3 4 Cash Inflows $0 $125 $150 $200 $225Cash Outflows $400 $150 $100 $50 $50From years 5 9, you will receivenet cash inflows of $100 per year (hint: use ordinary annuity valuation formulawith 12% as the interest rate, and be careful when deciding how many periods ittakes to discount it to the present value).