The 60 million, we have to discount back by one year at 40%.

And as you can see here, if I do that, I get 57.69.

I do the same thing with the 200 million here.

And I get 192 and etc, etc,

with my 3 million, I have to discount this back two years.

So I have 300 divided by 1.04 squared gives me 277 million and

change, some more sort of the thing with my 150.

Okay, so now I've got our futures table

with all of our cash flows included here.

And it looks exactly like it did before

except now the numbers I have here

are my equivalence at t equals 0.

So I can add them up, I can subtract them etc,

etc, to help me get NPVs.

All right, so what I do next and I'm going to go ahead and

show you these in the Excel,

is I'm going to replace all the numbers in my tree.

I'm not going to make any other changes except to a place

this numbers with the numbers discounted back to t=0 at 4%,

and we'll see what that does to the tree.

Once again, I'm going to jump to Excel.

I'm going to, I'll just type in the numbers directly here.

So I want to go number by number here for our inputs.

The 40 million we have to put in here to try for

a variance, that happens at t equals 0.

So I'm not going to muck around with that, but

clearly the cell or develop the variance property.

I am going to have to change these guys so,