npv

Present value of annuity for five years is 3.7908 for each future unit.
120000-30000=90000
90000×3.7908=341172
So present value equals 341172-300000=41172

Or alternatively if this annuity value not given only discount factors for each year since cash flows are the same each year it can be worked out by adding up
the discount factors
0.9091+0.8264+0.7513+0.6830+0.6209=3.7907
3.7907 is relevant annuity factor to use under this method.Then work out in same way as previously given.

You are welcome.I hope you are not under the impression I am a tutor.I am an ACCA Student.If you do want your questions answered by a professional tutor you can ask on the ask the tutor forum.However, you can also pose questions on general forum if you are happy for me or other students to answer.