You have been offered the opportunity to invest in a project that will pay $4,773 per year at the end of years one through three and $14,715 per year at the end of years four and five. If the appropriate discount rate is 13.5 percent per year, what is the present value of this cash flow pattern? Round the answer to two decimal places.
Present value=Cash flows*Present value of discounting factor(rate%,time period)
=4,773/1.135+4,773/1.135^2+4,773/1.135^3+14,715/1.135^4+14,715/1.135^5
which is equal to
=$27854.13(Approx).
You have been offered the opportunity to invest in a project that will pay $4,773 per...
You have been offered the opportunity to invest in a project that will pay $4,856 per year at the end of years one through three and $11,840 per year at the end of years four and five. If the appropriate discount rate is 14.4 percent per year, what is the present value of this cash flow pattern? Round the answer to two decimal places.
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You have been offered the opportunity to invest in a project that will pay $4,856 per year at the end of years one through three and $11,840 per year at the end of years four and five. If the appropriate discount rate is 14.4 percent per year, what is the present value of this cash flow pattern? Round the answer to two decimal places.
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