D E B 124 Problem 4 - NPV (10 points) 125 126 Net cash flow $ 200.000 per year 127 Cost investment) $ 1,000,000 128 Life 5 years 129 130 Given the information above, what is the NPV (use tables below). 131 The discount rate is 5%. 132 133 134 135 136 Tables 137 138 139 140 Present Value of $1 Periods 1 2 3 4 5 5% 0.95238 0.90703 0.86384 0.8227 0.78353 10% 0.90909 0.82645 0.75132 0.68301 0.62092 142 143 144 145 146 147 148 149 350 151 152 153 Present Value of an Annuity Periods 1 2 3 4 5 5% 0.95238 1.85941 2.72325 3.54595 4.32948 10% 0.90909 1.73554 2.48385 3.16986 3.79079