Problem

What is the present value of the following series of cash flows discounted at 12 percent:...

What is the present value of the following series of cash flows discounted at 12 percent: $40,000 now, $50,000 at the end of the first year; $0 at the end of the second year; $60,000 at the end of the third year; and $70,000 at the end of the fourth year?

a.  $165,857.


b.  $167,534.


c.   $168,555.


d.  $171,836.

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Solutions For Problems in Chapter 14