Initial outlay $90,000 Net cash inflows $19,000 Time 11 years Discount rate 16% NPV = CFO + CF1/ (1 + K) ^1 + CF2/ (1 + k) ^2 + CFn/ (1 + K) ^n NPV = -90,000 + 19,000/ (1 + 0.16) ^1 + 19,000/ (1 +0.16) ^2 + 19,000/ (1 +0.16) ^3 + 19,000/ (1 + 0.16) ^4 + 19,000/ (1 + 0.16) ^5 + 19,000/ (1 + 0.16) ^6 + 19,000/ (1 + 0.16) ^7 + 19,000/ (1 + 0.16) ^8 + 19,000/ (1 + 0.16) 49 + 19,000/ (1 + 0.16) ^10 + 19,000/ (1 + 0.16) ^11 NPV = -90,000 + 19,000/1.16 + 19,000/1.3456 + 19,000/1.5609 + 19,000/1.8106 + 19,000/2.1003 + 19,000/2.4364 + 19,000/2.8262 + 19,000/3.2784 + 19,000/3.8029 +19,000/4.4114 + 19,000/5.1173 NPV = -90,000 + 16,379.31 + 14,120.10 + 12,172.50 + 10,493.53 + 9,046.15 + 7,798.40 6,722.76 + 5,795.48 + 4,996.15 + 4,306.99 + 3,712.92 = 5,544.42 = 5.544