Homework Answers
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=70,000/1.12+70,000/1.12^2+70,000/1.12^3
=168128.19
NPV=Present value of inflows-Present value of outflows
=168128.19-$100,000
=$68128.19(Approx).
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