Calculate the NVP given the following cash flows if the appr

Calculate the NVP given the following cash flows if the appropriate required rate is 10%. Year 0 is $70000, year 1 is $20000, year 2 is 30000, year 3 is 30000, year 4 is 30000, year 5 is 30000, year 6 30000.

Solution

=70000 + 20000/ (1+0.1) + 30000/ ( 1+0.1)^2 + 30000/ ( 1+0.1)^3 + 30000/ ( 1+0.1)^4 + 30000/ ( 1+0.1)^5 + 30000/ ( 1+0.1)^6 = 191566.911893