Answer:
The net present value of the Sister Pools project is $12,057
Explanation:
Net Present value = Present value of cash inflows - Present value of cash outflows
Net Present value = $18,000 * PVAF (10.2%, 7 years) - $75,000
Net Present value = $18,000 * 4.8365 - 75,000
Net Present value = $87,057 - $75,000
Net Present value = $12,057
Note: The cost of capital is taken for similar business when a new business is started