As always, we state the inputs on a compatible time basis: If cash flows are annual, n is the projects life in years and r is an annual rate. Suppose we are reviewing a proposal that requires an initial outlay of TZS 2 million (CF = $2million). We expect that the proposed in- vestment will generate net positive cash flows of (CF1 = $0.50million) at the end of the first Year 1, (CF2 = $0.75million) at the end of Year 2, (CF3 = $1.35million) and at the end of Year 3. Using 10 percent as a discount rate, calculate the NPV