Please expand the different components of the NPV formula using an example CFi 1+r)l i=1

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Suppose a project has an initial investment I₀ = $ 10,000 and produces a cash flow CF of $ 2500 per year for 6 years. The minimum acceptable rate of return for the project is 10%. Substituting the same in the NPV formula

NPV = - $ 10,000 + $ 2500 $\div$ ( 1+ 0.10)¹ + $ 2500 $\div$ ( 1+ 0.10)² + $ 2500 $\div$ ( 1+ 0.10)³ + $ 2500 $\div$ ( 1+ 0.10)⁴ + $ 2500 $\div$ ( 1+ 0.10)⁵ + $ 2500 $\div$ ( 1+ 0.10)⁶

NPV = $ 888.15

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Please expand the different components of the NPV formula using an example CFi 1+r)l i=1

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Please expand the different components of the NPV formula using an example CFi 1+r)l i=1

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