1. Calculate Net Present Value for
Initial investment = 20000, Discount rate = 5% and gets back 45000 in next year

Solution:
initial investment = 20000
`i=5%=0.05` per year (Interest rate)

`FV=45000` (Future value)

Single cash flow NPV
`PV=(FV)/((1+i)^t)`

`PV=(45000)/((1+0.05)^1)`

`=(45000)/(10.05)`

`=42857.14`

Net present value formula,
`NPV=(FV)/((1+i)^t)` - initial investment

`=42857.14-20000`

`=22857.14`

Since NPV is greater than 0, so manager should accept project.