The net present value of the new plant that Hawke Skateboard wants to build based on the original projections is $-226,275.04.
What is the net present value?
Net present value is a capital budgeting method that calculates is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in years 0 = -3,280,000
Cash flow each year from year 1 to 15 = 3,280,000- 2,903,000 = 377,000
Cash flow in year 15 = 1,640,000
I = 11%
NPV = $-226,275.04
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