Question

What is the present value of the following cash-flow stream if the interest rate is 5%?...

What is the present value of the following cash-flow stream if the interest rate is 5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Year Cash Flow
1 $ 250
2 450
3 350
  Present value $   
1 0
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Answer #1


Net Present value$         948.60

Working

YearCash flowPV Factor @5%Present value
1
$          250.000.952380952$         238.10
2
$          450.000.907029478$         408.16
3
$          350.000.863837599$         302.34
Net Present value$         948.60
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