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Initial Investment 20000 Estimate Life 4 Years Discount Rate 8% Years Cash Inflows 1 5000 2 7000 3 7000 4 7000 Years 1 2

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Initial Investment 20000 Estimate Life 4 Years Discount Rate 8% Years Cash Inflows 1 5000 2 7000 3 7000 4 7000 Years 1 2 3 4 PVF@15% 0.925 0.857 0.793 0.735 Calculate Net Present Value (NPV) 1220 1000 920 1320

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