Net present value calulation - pls help?

Question

A project costs $300000 and can bring in $50000 for five years. If the desired rate of return is 10% what is the NPV andpresent value index? Use the data below:

Yr ----1--------2-------3 ------ 4------5

6% 0.943 0.890 0.840 0.792 0.747

10% 0.909 0.826 0.751 0.683 0.621

12% 0.893 0.751 0.712 0.636 0.567

Answer 1

The NPV index is 3.790 (sum of the pv factors for 10%).

The project brings in $189,500 (50,000 x 3.79) over the 5-year period.   The data equates to a negative NPV of $110,500  ($189,500 - $300,000).