Question 7
Cash flow | pv factor @ 10 % | present value |
4000 | 0.909 | 3636 |
8000 | 0.8264 | 6612 |
12000 | 0.7513 | 9016 |
Total present value | 19264 |
answer (A) is correct answer amounted 19264
Question 8
Anuually cash flow for continuous 5 years= $ 3000
Discount Rate = 12%
PV factor of 5 years@ 12 % = 3.6047
Present value= $3000*3.6047 = 10814.1
answer (B) is correct answer amounted 10814
Question 9
Value of perpetuity = Annual payment / discount rate
= $10/ 10% = $ 100
answer (c) is correct answer amount 100
What is the present value of the following stream of cash flows: 4,000 in one year,...
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