An entrepreneur has come up with an idea for a product that he will be able to produce and sell over four years. At time t = 0 (first year 1) he creates a company by depositing DKK 3.000.000 in cash (Equity). The company immediately acquires a production plant for the 3.000,000 (acquisition value). The life of the production plant is precisely 4 years. Over the 4 years the company generates the following net cash flows (revenue from sale of goods minus the costs of producing the goods):

CF0= -3.000.000 CF1 = 420.000, CF2 = 882.000, CF3 = 1.157.625, and CF4 = 972.405

For convenience, assume that all cash flows fall on the last day of the year and that the entire net cash flow received is immediately paid to the entrepreneur as a dividend. Therefore, there is no cash and cash equivalents at the end of each year in the company. The interest rate is assumed to be 5%. VAT and taxes should not be taken into account.

Calculate the economic value at the end of each year and the financial profit for each of the 3 years.