Answer:
-$4966.19
Explanation:
The net present value of the investment is the present value of cash inflows discounted at the discount rate of 10% minus the initial invested amount of $30,000.
The formula for discounting the inflows=1/(1+r)^n
r is the discount rate of 10%
n relates to the year of cash flow
net present value=$12,000/(1+10%)^1+$8,000/(1+10%)^2+$10,000/(1+`10%)^3-$30,000/(1+10%)^0=-$4966.19
The net present value is $-4966.19,which signals that the project is not viable and should be done away with
