Question 21.TQ.7: The following net cash flows relate to Lockhart Limited in c...

Accounting for Non-Accounting Students

The following net cash flows relate to Lockhart Limited in connection with a certain project that has an initial cost of £2500000:

Year	Net cash flow
	£000
1	800	(excluding the initial cost)
2	850
3	830
4	1200
5	700

The company’s required rate of return is 15%.
Required:
Calculate the net present value of the project.

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