The NPV (Net Present Value) of a project is the difference between the present value of the cash inflows and the present value of the cash outflows. To calculate the NPV, you need to discount the future cash flows to their present value using the market interest rate. Subtract the initial investment from the present value of the future cash flows to get the NPV.
The NPV (Net Present Value) of a project is the difference between the present value of the cash inflows and the present value of the cash outflows of the project. In this case, the project requires an initial investment of I in year 0 and yields an annual amount x starting from year 5.
To calculate the NPV, you need to discount the future cash flows to their present value using the market interest rate r. The formula to calculate the present value of a series of equal payments is PV = R / (1+r)^n, where R is the annual amount x and n is the number of years the cash flows will be received starting from year 5.
Once you have the present value of the future cash flows, subtract the initial investment I from it to get the NPV.