Present Value (PV) and Net Present Value (NPV)

Included here is a single year PV example. A multi-year example would have been more helpful, I think.

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Sometimes PV could be negative, economic inflation is a good example.
or maybe it would be positive but if you didn't add the economic inflation to the equation then you just screw up.
For example... Project A in Japan cost 1000$ while r = 20%, and the economic inflation there is 5%.
Project B in India costs 1000$ while r = 25%, and the economic inflation there is 15%.
If you aren't aware of economic inflation, you may think Project B is better because the PV will be 1250$ because it is higher than Project A PV which is 1200$.
But No! If you add the economic inflation value to the equation then the Project A PV will be 1150$, while the Project B PV will be 1100$.
So the right answer is Project A.