Net cash inflows of $20,000, $25,000, $30,000, and $50,000 are anticipated for a 4-year

financial project. The project's implementation will cost $75,000, which is payable at the start
of the project. Calculate the NPV using a discounted cash flow model if the needed rate of
return is 20%. You may present your answer in a table form.

Year Net Cash Flow – Discounted Cash Flow Model

Year Net Cash Flow (A) Present Value Factor Discounted Value
at 20% (B) (A) x (B)
0 ($75,000) 1.00 ($75,000)

1 $20,000 0.83 $16,600

2 $25,000 0.69 $17,250

3 $30,000 0.58 $17,400

4 $50,000 0.48 $24,000.

Net Present Value $250