The financial director of A Co has prepared the following schedule to enable her to appraise a new project. Interest rates are $10 \%$. She wants to calculate the PV of the cash flows using two different assumptions regarding the project duration.

The assumptions are as follows:

A. That the real annual cash flow will be $\$ 250,000$ from Year 4 for the foreseeable future.

B. That the real annual cash flow will be $\$ 250,000$ from Year 4 to Year 18.

Required: 

Calculate the NPV from the project under

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Assumption Assumption (A) (B) Year To T1 T2 T3 T4 onwards T4-T18 $000 $000 $000 $000 $000 $000 Net (2,000) (440) 363 399 250 250 cash flow