E.g. Computer Present Value of cash outflow from the following information :
Cash Outflow
1st Year 2nd Year 3rd. Year
Rs.80,000 Rs. 40,000 Rs. 50,000
PV factor at 10% of internal return
0.909 0.826 0.751
Solutions :
Discounted Value in Zero Year
Rs. 72,720 Rs. 33,040 Rs. 37,550
The Value of Rs. 72,720 Rs. 33,040 Rs. 37,550 represents discounted value of Zero Year.
