Question

What is the value today of $1,800 per year, at a discount rate of 10 percent, if the first payment is received 8 years from now and the last payment is received 32 years from today?

Answer 1

Year CF 1 $ - 2 $ - 3 $ - 4 $ - 5 $ - 6 $ - 7 $ - 8 $ - 9 $ 1.800.00 10 $ 1,800.00 11 $ 1.800.00 12 S 1,800.00 13 $ 1,800.00 14 $ 1,800.00 151 $ 1,800.00 16 $ 1,800.00 17 $ 1.800.00 18 $ 1.800.00 19 $ 1.800.00 20 $ 1.800.00 21 $ 1.800.00 22 $ 1.800.00 23 $ 1,800.00 24 $ 1,800.00 25 $ 1,800.00 26 $ 1,800.00 27 $ 1.800.00 28 $ 1.800.00 29 $ 1.800.00 30 $ 1.800.00 31 $ 1,800.00 32 $ 1,800.00 $7,544.61

Year ICF 1 To 2 30 4 0 50 6 0 7 0 8 0 9 1800 10 1800 11 1800 121800 13 1800 14 1800 151800 161800 171800 181800 19 1800 20 1800 21 1800 22 1800 23 1800 24 1800 251800 26 1800 271800 28 1800 291800 30 1800 311800 321800 PV =NPV(10%,B2:B33)