Hi 

can someone pls explain to me the method of calculations in Rita's seventh edition Exam prep on pg 106. She gives an example of calculating the NPV, and says you need to calculate both percent value of income and cost figures using the PV (present value formula ) which I am familiar with but can't make sense of her table. 

If anyone has Rita's fourth edition please have a loom at pg 106 and help. I just want to understand it.

thank you

Eda