NPV Calculation
you are the project manager working on contract for an upscale retail toy shop.Your project invloves implementing a party event planner department in stores in 15 locations across the country as a pilot to determine if this will be a profitable new service all the stores should offer.You have identified two alternatives methods of implementing the pilot.Alternative A's initial investment equals $596,000.The PV of the expected cash flows is $299,000 in year 1 and $301,000 in year 2.The cost of capital is 14 percent.
