00:01
Hello students, in this question we need to compute the npv.
00:05
So for that, first of all, we need to compute the present value of each cash flow.
00:08
So pv is computed as tf divided by 1 plus r to the power n.
00:15
So here we compute for every year.
00:22
So it will be for year 1, 1 ,000 ,008 lakh divided by 1 plus 0 .12 to the power 1.
00:34
So it will give us 1607143.
00:39
For year 2, it will be 199000 divided by 1, 0 .12 to the power 2.
00:48
So it will give us 1496599.
00:57
For year 3, it will be 17000000 divided by 1 plus 0 .12 to the power 3.
01:05
It will give us 1219938.
01:11
For year 4, it will be 1 ,000 ,003 lakh divided by 1 plus 0 .12 to the power 4...