I don't understand the last three parts in the calculation of NPV, why use 5m0.40.4/0.120.4 and 1M0.40.4/0.120.4/1.12^5

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I don't understand the last three parts in the calculation of NPV, why use 5m*0.4*0.4/0.12*0.4 and 1M*0.4*0.4/0.12*0.4/1.12^5 and the last part 0.4(5M(1-0.4)^5-1M)/1.12^5.plz explain those in details thanks :)

Posted Date: May 19, 2024 09:11 AM

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I don't understand the last three parts in the calculation of NPV, why use 5m*0.4*0.4/0.12*0.4 and 1M*0.4*0.4/0.12*0.4/1.12^5

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I don't understand the last three parts in the calculation of NPV, why use 5m0.40.4/0.120.4 and 1M0.40.4/0.120.4/1.12^5