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

Calculate the Present Value (PV):

Year Cash Out Flows (S) (a) Present Value Factor (1/1 07 (b) Present Value of Cash Out Flows (a 0 934.58 873.44 816.30 762.90 712.99 1,000 0.934579439 0.873438728 0.816297877 0.762895212 0.712986179 1,(MND

Hence, the Present Value of $762.90.

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