15 October 2017
Sir, let me tell the case. There is a cash inlow of Rs450000 in the first year, cash outflow of Rs50000 per year for next 9year and at last cash inflow of Rs450000 in 12th year. I have assigned negative sign for outflows.
21 July 2024
The cash flows described are divided into three years: Year 0 (initial year), Year 1 to Year 9, and Year 12 (final year). To calculate the net cash flows for each year, sum up the inflows and outflows. The net present value (NPV) of these cash flows can be calculated by discounting them to their present values using a discount rate, such as a required rate of return or cost of capital.