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

Table :

TABLE 9A-1 The Net Present Value of Three Hypothetical Projects