Net Present Value

Discount Rate 14.0%

Year 0 1 2 3 4

Discount Factor 1.00 0.88 0.77 0.67 0.59

Undiscounted Cash Flow (50,000) 12,500 12,500 12,500 12,500

Present Value (50,000) 10,965 9,618 8,437 7,401

Net Present Value (1,221)

Discounted Value - 1,535 2,882 4,063 5,099

Present Value vs Discounted Value

20,000
Discounted Value Present Value
10,000

-
1 2 3 4 5 6 7 8 9
(10,000)

(20,000)

(30,000)

(40,000)

(50,000)

(60,000)
 5 6 7 8 9

0.52 0.46 0.40 0.35 0.31

12,500 12,500 - - -

6,492 5,695 - - -

6,008 6,805 - - -

unted Value
Present Value

6 7 8 9 10