You are planning to build a new plant on31 December 2007.The initial cost will be $7,978,000.further costs during the first year will be $546,000 with positive cash flows expected in the second,third and fourth years of $2,500,000 ,$4,000,000, and $5,700,000 respectively.
The fifth year onwarsd is expected to produce net cash inflows of $2,000,000, in perpetuity.
Assume all cash flows at ends of years,except fro the initial cost.calculate the NPV of this project,assuming a cost of capital of 18%.

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