Hello Everyone.

I'm a newbie here and am taking Business Management and am in my last year but am stuck on some of the Principles of Finance and could use some help with not only the formula but also how to get the answer. I'm using a Texas Instrument BAII Plus financhial calculator. Here's the question.
A corp. is considering purchasing a new machine with an initial outlay of $4,500 and expected cash flows in years 1-4 of $2,200 per year. The risk adjusted discount rate for the firm is 12% and the risk free rate is 5%. I need to compute the net present value of this project.
Any help will be greatly appreciated.
Peace,
Elhodge

I would hold off using the calculator until you understand the concepts first. Here is a good tutorial site (they just recently starting hosting ads sadly): http://www.teachmefinance.com/

This one is good too: http://hspm.sph.sc.edu/COURSES/ECON/invest/invest.html

Good luck!