Problem: Which is the net present value of a project that contributes $5,000 at the end of the first year and $8,000 at the end of the second year. The initial cost is $3,000. The appropriate interest rate is 8% for the first year and 9% for the second year.
what I dont get here is if I have to bring the values to the present or the future?
Do I bring the payments to the present, or do I bring the value of the initial cost to the future?