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How did we find the NPV here for $17997? begin{tabular}{|r|c|r|r|r|} hline & A & B & C & D hline 1 & Year &
How did we find the NPV here for $17997?
\begin{tabular}{|r|c|r|r|r|} \hline & A & B & C & D \\ \hline 1 & Year & Inflow & Outflow & Net Flow \\ \hline 2 & 200 & $0 & $125,000 & $125,000 \\ \hline 3 & 20X0 & $0 & $100,000 & $100,000 \\ \hline 4 & 201 & $0 & $90,000 & $90,000 \\ \hline 5 & 202 & $50,000 & $0 & $50,000 \\ \hline 6 & 203 & $120,000 & $15,000 & $105,000 \\ \hline 7 & 204 & $115,000 & $0 & $115,000 \\ \hline 8 & 205 & $105,000 & $15,000 & $90,000 \\ \hline 9 & 206 & $97,000 & $0 & $97,000 \\ \hline 10 & 207 & $90,000 & $15,000 & $75,000 \\ \hline 11 & 208 & $82,000 & $0 & $82,000 \\ \hline 12 & 20X9 & $100,000 & $0 & $100,000 \\ \hline & Total & $759,000 & $360,000 & $399,000 \\ \hline & NPV & & & $17,997 \\ \hline & Hurdle Rate & 13,0% & & \\ \hline & Inflation Rate & 2.0% & & \\ \hline \end{tabular}Step by Step Solution
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