Economics · Capital Budgeting

A company is appraising a three-year project that requires an initial outlay on 1 January 20X4 of $30,000. The project is expected to give the following cash inflows on 31 December of each year: 20X4: $10,000 20X5: $20,000 20X6: $25,000 All of the above cash flows are before taking account of specific annual inflation of 5% per year. The nominal cost of capital is 14%. Using a nominal approach, what is the NPV of the project on 1 January 20X4 (to the nearest $)?