NPV = PV of Cash Inflows - PV of Cash Outflows
| Year | CF | PVF @8.7% | Disc CF |
| 0 | $ -1,08,000.00 | 1.0000 | $ -1,08,000.00 |
| 1 | $ 80,400.00 | 0.9200 | $ 73,965.04 |
| 2 | $ 29,300.00 | 0.8463 | $ 24,797.54 |
| NPV | $ -9,237.42 | ||
As NPV is -ve it is not suggseted to accept the project.
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