NPV Calculation for Project Acceptance

XYZ Corporation is evaluating a new project that requires an initial investment of $500,000 and is expected to generate cash inflows of $150,000 per year for the next 5 years. The company’s cost of capital is 10%. Calculate the Net Present Value (NPV) of the project. Based on the NPV, determine if the project should be accepted or rejected.

To find the NPV, you need to discount the cash inflows back to their present value and subtract the initial investment from this total present value.