Answer:
To calculate the NPV of the project, we need to find the present value of all the expected cash inflows and subtract the initial outlay. Using the formula:
NPV = -Initial Outlay + PV of Cash Inflows
We can plug in the given values:
NPV = -$65,000 + $14,000/(1+0.10)^1 + $14,000/(1+0.10)^2 + ... + $14,000/(1+0.10)^9
NPV = -$65,000 + $14,000/(1.10)^1 + $14,000/(1.10)^2 + ... + $14,000/(1.10)^9
NPV = -$65,000 + $14,000(4.355 + 3.969 + ... + 1.315)
NPV = -$65,000 + $14,000(26.034)
NPV = -$65,000 + $364,476
NPV = $299,476.34
Therefore, the project's NPV is $299,476.34.