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NPV approach to capital budgeting YEAR Cash in Cash out Net Flow PV 0 0 $35,000 $ (35,000) -35,000.00 1 7,000 - 7,000 6,306.31 2
NPV approach to capital budgeting | ||||
YEAR | Cash in | Cash out | Net Flow | PV |
0 | 0 | $35,000 | $ (35,000) | -35,000.00 |
1 | 7,000 | - | 7,000 | 6,306.31 |
2 | 10,000 | - | 10,000 | 8,116.22 |
3 | 15,000 | - | 15,000 | 10,967.87 |
4 | 10,000 | - | 10,000 | 6,587.31 |
5 | 6,000 | - | 6,000 | 3,560.71 |
NPV | $ 13,000 | -7,440.85 | ||
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