Calculate the net present value of a project which requires an initial investment of ₱1,000,000 with a 5% discount rate. Net cash flows for six years of the investment are ₱250,000 with each cash flow occurring at the end of the year. What is the PV of the cash flows? What is the NPV of the project?  Should the project be accepted?

Q: Please provide Answer with calculation

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Q: Please Provide Correct Answer

A: For your convenience, I will provide an Excel sheetcontinuecontinue THANK YOU

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.