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Present Value of Discounted Cash Flow Question

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jim0000 Present Value of Discounted... 07-22-2017, 11:44 PM
AliGW Re: Present Value of... 07-23-2017, 01:17 AM
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    Present Value of Discounted Cash Flow Question

    Hi. I'm currently reading the Dhandho Investor by Pabrai. Before my question, here's the example:

    Scenario
    Mr. Patel invests $5,000 in a motel business
    Annualized rate of return is 400%
    Runs the business for 10 years and is sold for what it was bought for at $50,000
    Discount rate is 10%

    Now I know how he got the figures for years 1 through 10. I used the formula =NPV(discount rate, value 1, value 2...)

    My question is how did he get $19,277.16 (in blue) and what is the formula to get this amount?

    Thanks,

    James
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    Re: Present Value of Discounted Cash Flow Question

    Duplicate thread closed. Please continue in your original thread.
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