(Solved): Holly Holiday Inc. is considering an investment that requires an initial investment of \( \$ 950,0 ...

Holly Holiday Inc. is considering an investment that requires an initial investment of \( \$ 950,000 \). There is no salvage or terminal value. The annual after-tax cash flows estimated for this project for the next six years are as follows: The appropriate discount rate for this project is \( 8 \% \). Required: a) Calculate the net present value (NPV) assuming the future cash flows occur evenly over the year. b) The company would like to have an NPV for this project equal to \( \$ 25,000 \). What does the initial investment have to be to result in an NPV of \( \$ 25,000 ? \) Complete your calculations using Excel.