Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital is 10 percent.

Year	Expected Net Cash Flow
0	($800,000)
1	400,000
2	400,000
3	400,000

1. What it the projects NPV? (5pts.)

NPV = -800000 +( 400000)/(1.10) +( 400000)/((1.10)^(2)) +( 400000)/((1.10)^(3))

$194,741

I got the answer right, but I need an explanation. as you see below

B. Please explain the relevance (meaning)of the answer.