Solve for when outflow/inflow occurs and PV factor

Solve: Harper Company has been offered a five year contract to provide component parts for a large manufacturer. (1) Indicate if the cash flow is an inflow an outflow in the left (2) indicate in what year(s) those cash flows occurred in the blank to the right (3) Look up the factor that would be used to determine the PV of the cash flow from the PV tables. Discount rate (Cost of capital) is 10%. Costs and revenues associated with the contract would be: Annual revenues and costs: Evaluate: What are some problems with the NPV method? Assumptions of NPV: 1. Amount and timing of cash flows can be determined. 2. Cash flows occur at the end of the year. 3. All cash flows were immediately reinvested at the discount rate