A project costs $200,000 per year for 5 years, starting immediately. You estimate that it will produce a cash inflow after operating costs of $170,000 a year for 10 years, starting 3 years from now. The opportunity cost of capital is 17 percent.
What is the present value of costs?
What is the present value of the cash inflows?
Based on these cost and cash inflow estimates, what is your recommendation?