Find the NPV of a project with the following cash flows: Year 0 1 2 3 4 5 6 7 8 9 Costs 90000 0 1000 8000 0 0 0 0 0 Benefits 0 1000 6000 16000 5000 5000 5000 5000 5000 5000 While the numbers are cutoff at year 9, assume the 5000 benefit continues until year 50. Assume 4% is the appropriate real discount rate. (You may assume that the #'s are in real dollars.) What is the NPV? What is the benefit cost ratio? (l.e. Total Benefits/Costs) Would you recommend this project?
