E.g. Computer Present Value of cash outflow from the following information :
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
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.