Question 4: Meltek corporation is involved in the business of furniture manufacturing. The current capacity utilization

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Question 4: Meltek corporation is involved in the business of furniture manufacturing. The current capacity utilization

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Question 4: Meltek corporation is involved in the business offurniture manufacturing. Thecurrent capacity utilization of Meltek machines is already 100percent and it’s the peakseason for the customer’s demand for furniture in Meltek. Due tothis, the company is notable to meet the timely production of goods and require moremachinery and place formanufacturing the pending orders. Now, considering the proposalfrom the projectmanager, following information is available for evaluating a newproject investment. Theexpected cash flows from the investment would result asfollows:Year Cash Flow0 -10,00,0001 3,00,0002 3,50,0003 4,00,0004 3,50,000
The cost of capital for Meltek Industries is 15 percent.Calculate the Net Present Value of thisproject?
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