Hi

I have the following Net Present Value question:

New 10 year project - Investments required:
- Patent (Cost $1.5 million) depreciated Straight Line @ 25%
- Software (Cost $1 million) immediately written off
- Additional Net working capital =$200,000

Sales (units) - 5000(year 1), and increases by 10%(years 2-5) and stablizes (years 6-10)
Selling Price =$500/unit
Production cost =$350/unit
Software maintenance expense =$50,000/year
Selling and administration expense =$750,000/year
Additional Overhead =$250,000/year

Cost of capital =12%

I am confused about how to record the immediate write off the software in order to calculate my Net present value correctly. Can somebody please answer this for me?

Thanks