Question

what is the pv in year 4? With interest rate 7%, calculate the PV of following cash flows. Year Payment PV 1,000 1,000 1,000 1,000 1,000
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Answer #1

Year

Payment

PV = payment/(1+r)^n r =7%

1

1000

934.57944

2

1000

873.43873

3

1000

816.29788

4

1000

762.89521

5

1000

712.98618

PV at year 4

1000/1.07^4

762.89521

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