Where they get this 4.1925? Thanks.

Ilustrative Problem 8.1. NVP Calculation: Even Cash Inflows RST Company is planning to purchase heavy equipment that will be part of the main manufacturing plant. The equipment cost P 700,000 and will increase the cash inflow per year by P200, 000. The equipment has an estimated useful life of 10 years with no salvage value. RST is aiming for a 20% return on all of its investment. 2. Should the equipment be Required: 1. NPV of the investment project. purchased? Solution: 1. Net Present Value Present value of the cash inflow (P200, 000 x4.1925*) 838,500 Present value of the cash outflow or initial investment Net Present Value P 138,500