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If $10000 is invested in a certain business at the start of the year, the investor...

If $10000 is invested in a certain business at the start of the year, the investor will receive $2700 at the end of each of the next 6 years. What is the present value of this business opportunity if the interest rate is 7% per year?

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Answer #1

YEAR cash flows -$10,000 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 Present value pv @ 7% 1.0000 0.9346 0.8734 0.8163 0.7629 0

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