Homework Answers
NPV = PV of Cash Inflows - PV of Cash Outflows
| Month | CF | PVF @1% | Disc CF |
| 1 | $ 50,000.00 | 0.9901 | $ 49,504.95 |
| 2 | $ 50,000.00 | 0.9803 | $ 49,014.80 |
| 3 | $ 50,000.00 | 0.9706 | $ 48,529.51 |
| 4 | $ 50,000.00 | 0.9610 | $ 48,049.02 |
| 5 | $ 50,000.00 | 0.9515 | $ 47,573.28 |
| 6 | $ 50,000.00 | 0.9420 | $ 47,102.26 |
| 7 | $ 50,000.00 | 0.9327 | $ 46,635.90 |
| 8 | $ 50,000.00 | 0.9235 | $ 46,174.16 |
| 9 | $ 50,000.00 | 0.9143 | $ 45,716.99 |
| 10 | $ 50,000.00 | 0.9053 | $ 45,264.35 |
| 11 | $ 50,000.00 | 0.8963 | $ 44,816.19 |
| 12 | $ 50,000.00 | 0.8874 | $ 44,372.46 |
| PV of Cash Inflows | $ 5,62,753.87 | ||
| Initial Outflow | $ 2,43,000.00 | ||
| NPV | $ 3,19,753.87 | ||
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