Homework Answers
| NPV | |||
| Year | Cash flow(in GBP) | PV @ 17% | Disc. Cash flows(in GBP) |
| 1 | 100 | 0.8547 | 85.47 |
| 2 | 120 | 0.7305 | 87.66 |
| 3 | 160 | 0.6244 | 99.904 |
| 4 | 200 | 0.5337 | 106.74 |
| 5 | 360 | 0.4561 | 164.196 |
| Total cash inflows = | 543.97 | ||
| Initial outflow = | 790 | ||
| NPV = | -246.03 | ||
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