Discounted Cash Flow Model Exercise
Project 3
10% NPV
Year Cash Flow NPV Values
Factors
0 (100,000) 1.000 (100,000)
1 12,500 0.909091 11,364
2 35,000 0.826446 28,926
3 40,000 0.751315 30,053
4 40,000 0.683013 27,321
5 40,000 0.620921 24,837
Sum 22,499
IRR 17.31%
Months To Payback 49