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NPV and discount rate

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Need help with formula and how the discount rate is calulated in.

what is the total present value of 50.00 received in 1 year, 200 received in 2 years and 800 received in 6 years if the discount rate is 8%?

I need help understanding the formula and assistance with this example so I ensure i know how to do do discount rates with the present values

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This solution helps with a NPV and discount rate problem.

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Net Present Value =cash flow in year 0 + cash flow in year 1 / (1+discount ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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