Question: can you please show me how to do the calculation to find NVP that i circle in blue? Thanks h F, Project NPV = 10

can you please show me how to do the calculation to find NVP that i circle in blue? Thanks

can you please show me how to do the calculation

h F, Project NPV = 10 + E where 1=1 (1 + k) 1. Initial investment (since it is an outflow, the number will be negative) F. = net cash inflow for period t k = required rate of return Projects with Net Present Value A B D E F G H 1 J K L M 1 2 Exhibit 2.3B 3 4 Example Comparing Two Projects Using NPV 5 Project A Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total Formulas 6 Required 15% 7 Outflows $700,000 $700,000 8 Inflows $225,000 $225,000 $225,000 $225,000 $225,000 $1,125,000 9 Net inflows $225,000 $225,000 $225,000 $225,000 $225,000 $425,000 Project A: -C7NPV(B6,09:H9) 10 NPV $54,235 11 12 12 13 Project B 14. Required 15% 15 Outflows $400,000 $400,000 16 Inflows $110,000 $110,000 $110,000 $110,000 $110,000 $550,000 17 Net inflows $110,000 $110,000 $110,000 $110,000 $110,000 $150,000 Project B: -C15+NPV(B14,017:H17) 18 NPV $31,263 19 20 21 22 NPV comparison: Accept Project A-.-NPV is positive 23 Reject Project B...NPV is negative

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