All value comes from future cash flows, and making positve net present value decisions is the sign of a good steward of capital and management.

Everything is built on those core ideas.

You have the opportunity to invest $$10,000$ today.

The expected future cash flows over the next three years are $$2,300,$ $$3,400,$ and $$5,100$ respectively.

The expected discount rate is $5\mathrm{.}0\%$ per year.

What is the approximate NPV and would you accept or reject the investment?

NPV $=($$$320)$; reject investment

NPV $=$ $$230$; accept investment

NPV $=($$$230)$; reject investment

NPV $=$ $$320$; accept investment