document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=33747>Question 33747</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Calculate the NPV(Net Present Value) for a project costing $250,000 which will then provide $25,000 annually for 25 years.  The discount rate is 5%.  What would the NPV be if the inflows were $20.000 annually for only 20 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #20163 by </B><A HREF=/tutors/aboutme.mpl?userid=venugopalramana><B>venugopalramana(3286)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=venugopalramana><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.geocities.com/venugopalramana/FREE_MATHS_ASSISTANCE.html valign=middle><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=20163\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Calculate the NPV(Net Present Value) for a project costing $250,000 which will then provide $25,000 annually for 25 years. The discount rate is 5%. What would the NPV be if the inflows were $20.000 annually for only 20 years?<BR>\n" );
document.write( "TABULATE AS FOLLOWS IN XL WORK SHEET WHICH IS SELF EXPLANATORY.IF YOU GO TO FUNCTIONS-FINANCIALS AT THE END AND GIVE THE DISCOUNT RATE OF 0.05 AND NET INFLOW COLUMN AS THE DATA,YOU WILL GET NPV AT THE END.THE FORMULA IN XL IS.<BR>\n" );
document.write( " =NPV(0.05,D256:D281)WHERE 0.05 IS THE DISCOUNT RATE GIVEN AS 5% PER YEAR AND D256:D281 IS THE COLUMN WHERE NETINFLOW IS DEPICTED.IF YOU WANT TO KNOW MATHMATICAL FORMULA FOR THIS PLEASE COME BACK AND WE SHALL EXPLAIN\r<BR>\n" );
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document.write( "YEAR	INFLOW	OUTFLOW	NETINFLOW	YEAR	INFLOW	OUTFLOW	NETINFLOW<BR>\n" );
document.write( "1		250000	-250000...	1		250000	-250000<BR>\n" );
document.write( "2	25000		25000...	2	20000		20000<BR>\n" );
document.write( "3	25000		25000...	3	20000		20000<BR>\n" );
document.write( "4	25000		25000...	4	20000		20000<BR>\n" );
document.write( "5	25000		25000...	5	20000		20000<BR>\n" );
document.write( "6	25000		25000...	6	20000		20000<BR>\n" );
document.write( "7	25000		25000...	7	20000		20000<BR>\n" );
document.write( "8	25000		25000...	8	20000		20000<BR>\n" );
document.write( "9	25000		25000...	9	20000		20000<BR>\n" );
document.write( "10	25000		25000...	10	20000		20000<BR>\n" );
document.write( "11	25000		25000...	11	20000		20000<BR>\n" );
document.write( "12	25000		25000...	12	20000		20000<BR>\n" );
document.write( "13	25000		25000...	13	20000		20000<BR>\n" );
document.write( "14	25000		25000...	14	20000		20000<BR>\n" );
document.write( "15	25000		25000...	15	20000		20000<BR>\n" );
document.write( "16	25000		25000...	16	20000		20000<BR>\n" );
document.write( "17	25000		25000...	17	20000		20000<BR>\n" );
document.write( "18	25000		25000...	18	20000		20000<BR>\n" );
document.write( "19	25000		25000...	19	20000		20000<BR>\n" );
document.write( "20	25000		25000...	20	20000		20000<BR>\n" );
document.write( "21	25000		25000...	21	20000		20000<BR>\n" );
document.write( "22	25000		25000				<BR>\n" );
document.write( "23	25000		25000				<BR>\n" );
document.write( "24	25000		25000				<BR>\n" );
document.write( "25	25000		25000				<BR>\n" );
document.write( "26	25000		25000				<BR>\n" );
document.write( "	NPV		$97,474.87 		NPV-NEGATIVE	($719.80) </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );