BBA 3301 Financial Management
Mathematics
(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 7 years. Calculate the projects NPV using a discount rate of 5 percent. (Round to the nearest dollar.)a. If the discount rate is 5 percent, then the projects NPV is :
