A project requires a $5000 cash investment at the beginning of year 1. This project will produce a $2000 cash income at the end of each of years 1-4. Using appropriate annual discount factors set up a simple table showing data and a calculation of the NPV of this cash flow discounted at 10%.© BrainMass Inc. brainmass.com March 4, 2021, 7:43 pm ad1c9bdddf
($5,000) $2,000 $2,000 $2,000 $2,000
NPV = $1,339.73 ...
Net Present Value of an investment project is calculated.