Homework Answers
NPV = Present value of cash inflows - present value of cash outflows
NPV = -280,000 + 20,000 / (1 + 0.12)1 + 0 / (1 + 0.12)2 + 120,000 / (1 + 0.12)3 + 165,000 / (1 + 0.12)4 + 70,000 / (1 + 0.12)5
NPV = -280,000 + 17,857.14286 + 0 + 85,413.62974 + 104,860.4829 + 39,719.8799
NPV = -32,149
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