Computing NPV

Calculate the NPV of an investment project with an initial cost of $6 million and positive cash flows of $2.6 million at the end of Year 1, $2.4 million at the end of Year 2, and $3.8 million at the end ofYear 3. Use 8% as the discount rate.

npv(r = 0.08, cf = c(-6, 2.6, 2.4, 3.8))

[1] 1.482