InvestCorp is evaluating a project that requires an initial investment of $50,000. The project's cash inflows for the next five years are expected to be $12,000 in Year 1, $15,000 in Year 2, $18,000 in Year 3, $20,000 in Year 4, and $25,000 in Year 5. If the company's required rate of return is 8%, what is the present value of the future cash inflows from this project?

To calculate the present value (PV) of future cash flows, we use the formula:

$$PV = rac{C}{(1 + r)^n}$$

where:

• $PV$ = Present Value
• $C$ = Cash inflow in each period
• $r$ = Discount rate (8% or 0.08 in decimal)
• $n$ = Year (1, 2, 3, etc.)

Calculate the present value of each cash inflow and sum them up.