A contract is estimated to yield net annual returns of $24,000 for ten years. To secure the contract, an immediate outlay of $130,000 is required. Interest is 14% compounded annually.
Calculate the net present value (NPV) of the contract and determine whether the project should be accepted or rejected according to the net present value criterion.
Should the project be accepted or rejected?
Answer: The project should be rejected b/c NPV= -4,813
would like to know how to get to that answer