Discounted Cash Flow Model Exercise
Project 2
10% NPV
Year Cash Flow NPV Values
Factors
0 (50,000) 1.000 (50,000)
1 20,000 0.909091 18,182
2 25,000 0.826446 20,661
3 30,000 0.751315 22,539
4 35,000 0.683013 23,905
5 40,000 0.620921 24,837
Sum 60,125
IRR 44.65%
Months To Payback 30