Can you explain how they calculate the value of NPV? 1.ProjectDevelopment time (hrs.)Initial investment1,250 hrs*$52 = $65,000400 hrs*$52 = $20,800Calendar/emailExpense reportTracking programSpreadsheet program1,250400750 hrs*$52 = $39,0002,500 hrs*$52 = $130,0001,875 hrs*$52 = $97,5006,250 hrs*$52 = $325,0007502,5001,8756,250Total time: 13,025 hrs.Web browserTrip plannerYearDiscountfactorProjectTrackingSpreadsheet program0.10WebCalendar/emailExpensereport0.05planner0.05browserprogram0.05-0.100.15-$65,000$750,000$675,000$607,500-$20,800$250,000$262,500$275,625-$39,000$500,000$525,000$551,250-$130,000$1,000,000$1,100,000$1,210,000-$97,500$2,500,000$2,875,000$3,306,250 | $1,433,250-$325,000$1,300,000$1,365,000110.89290.797230.7118NPV$1,575,155$607,862$1,218,324 | $2,501,025 | $6,779,899 | $2,944,043

The question is related to Capital Budgeting. The Net Present Value will be calculated with the help…

1. Project Development time (hrs.) Initial investment Calendar/email Expense report Tracking program Spreadsheet program 1,250 hrs*$52 = $65,000 400 hrs*$52 = $20,800 750 hrs*$52 = $39,000 2,500 hrs*$52 = $130,000 1,875 hrs*$52 = $97,500 6,250 hrs*$52 = $325,000 1,250 400 750 2,500 1,875 6,250 Total time: 13,025 hrs. Web browser Trip planner Discount factor Year Project Calendar/ email Expense герort 0.05 Tracking program 0.05 Spreadshee t program 0.10 Web browser T planner 0.05 -0.10 0.15 -$65,000 $750,000 $675,000 $607,500 -$20,800 $250,000 $262,500 $275,625 -$39,000 $500,000 $525,000 $551,250 -$130,000 $1,000,000 $1,100,000 $1,210,000 -$97,500 $2,500,000 $2,875,000 $3,306,250 -$325,000 $1,300,000 $1,365,000 $1,433,250 1 1 0.8929 3 0.7972 0.7118 NPV $1,575,155 $607,862 $1,218,324 $2,501,025 $6,779,899 | $2,944,043