Question 33745
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.
=NPV(0.05,D256:D275)WHERE 0.05 IS THE DISCOUNT RATE GIVEN AS 5% PER YEAR AND D256:D275 IS THE COLUMN WHERE NETINFLOW IS DEPICTED.IF YOU WANT TO KNOW MATHMATICAL FORMULA FOR THIS PLEASE COME BACK AND WE SHALL EXPLAIN 

IT IS WORTH $3,115,552.59 TO DAY
YEAR	INFLOW	OUTFLOW	NETINFLOW
1	250000		250000
2	250000		250000
3	250000		250000
4	250000		250000
5	250000		250000
6	250000		250000
7	250000		250000
8	250000		250000
9	250000		250000
10	250000		250000
11	250000		250000
12	250000		250000
13	250000		250000
14	250000		250000
15	250000		250000
16	250000		250000
17	250000		250000
18	250000		250000
19	250000		250000
20	250000		250000
			
NPV			$3,115,552.59