A project has estimated annual cash flows of $95,000 for four years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 12%.

Below is a table for the present value of $1 at compound interest.

Year 12%
1 .893
2 .797
3 .712
4 .636

Below is a table for the present value of an annuity of $1 at compound interest.

Year 12%
1 .893
2 1.690
3 2.402
4 3.037

Very interesting now apply yourself and do the math

Hey guess what, how about you stop talking to me. Thanks man, appreciate it.

Fine by me, your loss

You weren't going to help me anyway.

All you do is take $95,000 times 3.037 which equals $288,515 and subtract that from $260,000 which equals $28,515 which ends up being the net present value of the project.