I was taking a revision exam and could not come to the answer given for the question below. Could you please help me?
Initial cost – $300,000
Expected life – 5years
Estimated scrap value – $20,000
Addition revenue from the project – $120,000 per year
Incremental costs of the project – $30,000 per year
Cost of capital – 10%
Calculate the NPV
The answer is 53610 and I got 53581.