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I think I may be doing this wrong do you figure each out then the sum of all of these subtract from year 0???
Managers at Terlingua Drilling identify a potential new drilling project. They estimate the following expected net cash flows if the project is adopted. . Year 0: ($1,250,000) Year 1: $100,000 . Year 2: $400,000 . Year 3: $400,000 Year 4: $200,000 Year 5: $200,000 . Year 6: $300,000 . Year 7: $100,000 Suppose that the appropriate discount rate for this project is 12%, compounded annually. Calculate the net present value for this proposed project. Do not round at internediate steps in your calculation. Round your answer to the nearest dollar. If the NPV is negative, include a minus sign. Do not type the $ symbol.

Example: 400000/(1.012)^2 etc then the sum minus year 0
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Computation of Net present value of Project Year Cash flows PV1 F@ 12 % Present value of cash flows 0 (S1,250,0001 1S100,000 0.8928571 2 S400,000 0.7971939 3 S400,000 0.7117802 4 $200,000 0.6355181 5 S200,000 0.5674269 6 S300,000 0.5066311 ($1,250,000) $89,285.71 $318,877.55 $284,712.10 S127,103.62 $113,485.37 $151,989.34 7 S100,0000.4523492S45.234.92 NPV (S119,311.39) Ans: NPV-119,311 (Rounded) Note NPV-Present value of cash inflows - Present value of cash outflows PVIF(I , n)= 1/(1+1) n

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