What is the difference between discounted present value and net present value?
What is the NPV of the following cash flows, assuming a 6% discount rate?
Initial investment – year 0: $(1,000,000)
Year 1 cash flows: $100,000
Year 2 cash flows: $100,000
Year 3 cash flows: $100,000
Year 4 -sale: $1,200,000