3 October 2003 QUESTION 1(Continued) Step 4-Calculate NPV NPV=$402500× PVIFA $l400000 (s402500×3622)-$140000 $1457855-$1400000 $57855 The project has a positive NPV and should be accepted3 October 2003 QUESTION 1 (Continued) Step 4 – Calculate NPV ( ) $57 855 $1457 855 - $1400 000 $402 500 3.622 - $1400 000 NPV $402 500 PVIFA0.1665,6 - $1400 000 = = =  =  The project has a positive NPV and should be accepted