Question

ambrin Corp. expects to receive $10,000 per year for 15 years and $11,500 per year for the next 15 years. What is the present value of this 30 year cash flow? Use an 12% discount rate.

Answer 1

=C300*B300 D Present value 309 D300 - X V fc A B C 298 Year Cash flow PVIF@12% 2990 $ - 1.000 $ 300 11 $ 10,000 0.893 $ 301 21 $ 11,000 0.797 $ 302 3 $ 12,100 0.712 $ 303 4 $ 13,310 0.636 $ 304 5 $ 14,641 0.567 305 6 $ 16,105 0.507 $ 306 7 $ 16,105 0.452 $ 307 8 $ 16,105 0.404 $ 308 9 $ 16,105 0.361 $ 10 $ 16,105 0.322 $ 310 11 $ 16,105 0.287 311 12 $ 16,105 0.257 $ 312 13 $ 16,105 0.229 $ 313 14 $ 16,105 0.205 $ 314 15 $ 16,105 0.183 $ 315 16 $ 11,500 0.163 $ 316 17 $ 11,500 0.146 $ 317 18 $ 11,500 0.130 $ 318 19 $ 11,500 0.116 $ 319 20 $ 11,500 0.104 $ 320 21 $ 11,500 0.093 $ 321 22 $ 11,500 0.083 $ 322 23 $ 11,500 0.074 $ 323 24 $ 11,500 0.066 $ 25 $ 11,500 0.059 $ 325 26 $ 11,500 0.053 $ 27 $ 11,500 0.047 $ 327 28 $ 11,500 0.042 $ 29 $ 11,500 0.037 $ 329 30 $ 11,500 0.033 $ 331 Present value 8,928.57 8,769.13 8,612.54 8,458.75 8,307.70 8,159.34 7,285.13 6,504.58 5,807.66 5,185.41 4,629.83 4,133.78 3,690.87 3,295.42 2,942.34 1,875.90 1,674.91 1,495.46 1,335.23 1,192.17 1,064.44 950.39 848.56 757.64 676.47 603.99 539.28 481.50 429.91 383.85 324 326 328 $ 109,020.73

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