Exercise $10-6$A $($Algo$)$ Determining net present value LO $10-2$

Aaron Heath is seeking part$-$time employment while he attends school. He is considering purchasing technical equipment that will enable him to start a small training services company that will offer tutorial services over the Internet. Aaron expects demand for the service to grow rapidly in the first two years of operation as customers learn about the availability of the Internet assistance. Thereafter, he expects demand to stabilize. The following table presents the expected cash flows:

$\backslash$table$[[$Year of$,,],[$Operation$,$Cash Inflow,Cash Outflow$],[$Year $1,$$$42,000,$$$20,500$