Problem:
Find the net present value for the following series of future cash flows, assuming the company's cost of capital is 6.5%. The initial outlay is $450,200. Explain comprehensively and also provide formulas and calculations.
Year 1: $181, 00
Year 2: 125,600
Year 3: 196,460
Year 4: 185,000
Year 5: 144,600