You have the following information about international investment project:
Total initial investment - $ 2,500,000
Deposit rates for legal entities - 8% per annum
Expected inflation - 3%
Risk-adjusted– 3%
Total income: 1st year – $1,800,000; 2nd year – $2,400,000; 3rd year – $2,600,000; 4th
year – $2,700,000
Total current expenditure: 1st year – $900,000; 2nd year – $1,200,000; 3rd year –
$1,300,000; 4th year – $1,300,000
Profit tax – 15%.
Calculate the indicator of NPV for this investment project and estimate its
attractiveness to investors.