### Discounted cash flow model to determine the NPV

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##### Reference no: EM131020343

A five-year software development project is forecast to have net cash inflows of \$15,000, \$20, 000, \$25,000, \$30,000, and \$50,000 in the next five years. It will cost \$80,000 to implement the project, payable at the beginning of the project. There is an assumed inflation rate of .02 each of the five years for this project. If the required rate of return is .05, construct a discounted cash flow model to determine the NPV. Use the concepts found in Mantel, Chapter 1, Section 1.5 and Excel to create the formulas needed to calculate the NPV. Assume the inflows all occur at the end of the year.

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