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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