How to calculate NPV?

What are the steps to calculate NPV?

1. Estimate Cash flows (inflows & outflows).
2. Assess riskiness of Cash Flows.
3. Determine  r  = discount rate for the project.
4. Find NPV 
5. Accept if NPV > 0 

** Note that cash flow and not profit is used to calculate NPV. When given profit, please calculate cashflow before calculating NPV. Example:

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