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Agriculture & Business Management - Colorado State University ...

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Year<br />

<strong>Agriculture</strong> &<br />

<strong>Business</strong><br />

<strong>Management</strong><br />

Investment<br />

B<br />

Discount<br />

Factor 5%<br />

Present<br />

Value<br />

Initial Cost $10,000 1.0000 -$10,000<br />

1 $4,000 0.9524 $3,810<br />

2 $4,000 0.9070 $3,628<br />

3 $4,000 0.8638 $3,455<br />

4 0.8227 $0<br />

5 0.7835 $0<br />

6 0.7462 $0<br />

Net Present Value<br />

$893

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