4 problems.

% = Chart Values are Based on: 10 Year Cash Inflow 40,000 56,000 80,295 90,400 5 65,000 PV Factor 0.9090 0.8264 0.7513 0.6830 0.6210 Present Value 36,360 46,281 60,326 61,743 = = X 40,365 $ 245,075 Present value of cash inflows Present value of cash outflows Net present value $ 245,075 160,000 $ 85,075 Initial Investment Year Project B $ Cash Inflow 32,000 X 50,000 X 66,000 72,000 24,000 X 105,000 PV Factor 0.9090 0.8264 = 2 0.7513 Present Value 29,088 41,320 49,586 49,176 14,904 $ 184,074 0.6830 0.6210 Present value of cash inflows Present value of cash outflows Net present value $ 184,074 105,000 $ 79,074