Year Net Cash Flow Discount Factor Present Value $($using the factor$)$ Present Value $($using Excel formula$)$

$0$ $$(3,500,000\mathrm{.}00)1$ $$(3,500,000\mathrm{.}00)($$$3,500,000\mathrm{.}00)$

$1$ $$900,000\mathrm{.}000\mathrm{.}90909$ $$818,181\mathrm{.}00$ $$818,181\mathrm{.}82$

$2$ $$900,000\mathrm{.}000\mathrm{.}82645$ $$743,805\mathrm{.}00$ $$743,801\mathrm{.}65$

$3$ $$900,000\mathrm{.}000\mathrm{.}75131$ $$676,179\mathrm{.}00$ $$676,183\mathrm{.}32$

$4$ $$900,000\mathrm{.}000\mathrm{.}68301$ $$614,709\mathrm{.}00$ $$614,712\mathrm{.}11$

$5$ $$900,000\mathrm{.}000\mathrm{.}62092$ $$558,828\mathrm{.}00$ $$558,829\mathrm{.}19$

Net Present Value $$(88,298\mathrm{.}00)$ $$(88,291\mathrm{.}91)$

$3.$ Now assume that inflation is estimated as a $5\%$ increase each year $($starting with Year $1)$ for the entire $5$ years. Calculate the new net cash flow values for each year. Hint: You should start with $5\%$ increase for Year $1$ net cash flow.