You are a developer with experience in smaller single lot residential developments. A friend has asked to invest in your next project and wants to know what scale of project would give a NPV of around $400000, and a reasonable PD market IRR. Prepare some realistic figures that would give a NPV of $ 400000. The table and formula seen below may help you contemplate this question. There are many correct answers to this question. Include a screen shot of your Excel formula in your answer, to show your cash-flow amounts, NPV and IRR %.

YOU NEED TO ENTER THE CASHFLOWS AND JUSTIFY THE AMOUNT

	Year 0	Year 1	Year 2	Year 3
Net Cash Flows	$	$	$	$

CF 2 CF NPV = CF, + (1 +1)! (1+1) n = + + ... CF (1+1)