Vanessa Company is evaluating a project requiring a capital expenditure of $480,000. The project has an estimated life of 4 years and no salvage value. The estimated net income and net cash flow from the project are as follows: 
The company's minimum desired rate of return for net present value analysis is 15%. The factors for the present value of $1 at compound interest of 15% for 1, 2, 3, and 4 years are 0.870, 0.756, 0.658, and 0.572, respectively.Determine (a) the average rate of return on investment and (b) the net present value for the project.
Definitions:
Quantity Demanded
The total amount of a good that consumers are willing to purchase at a given price level in a market.
Demand Curve
A graphical representation depicting the relationship between the price of a good and the quantity demanded by consumers, usually showing an inverse correlation.
Income Change
A variation in the amount of earnings received by a household or individual, which could arise from sources such as wages, investments, or benefits.
Price Change
Refers to the variance in the cost of goods or services over time, which can be an increase or a decrease.
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