At a 10% discount rate, the given cash flows' net present value equals zero dollars.
We call this the net present value (NPV), which is the difference between the current value of future cash inflows and outflows. In capital budgeting and investment planning, NPV is used to analyse the profitability of a projected investment or project.
A project or investment's net present value tells you how much money it will make or lose in today's dollars. Future cash flow of a project does not precisely reflect current cash flow due to the effects of things like inflation and lost compound interest, hence NPV is modified accordingly.
A larger Net Present Value is always considered when making investment selections since it suggests that the venture may be profitable.
To learn more about net present value refer to:
https://brainly.com/question/13228231
#SPJ4