44-1
The Net Present Value of Three Hypothetical Projects
| Project | Dollars realized today | Dollars realized one year from today | Present value formula | Net present value given r = 0.10 |
|---|---|---|---|---|
| A | $100 | — | $100 | $100.00 |
| B | −$10 | $115 | −$10 + $115/(1 + r) | $94.55 |
| C | $119 | −$20 | 119 − $20/(1 + r) | $100.82 |