Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=350/1.08+480/1.08^2+520/1.08^3+600/1.08^4+100/1.08^5
=1657.47
NPV=Present value of inflows-Present value of outflows
=1657.47-$1000
=657.47(Approx).
Hence since NPV is positive;project must be accepted.
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