General Motors Corporation has invested in a project which is expected to payback the following cash...

General Motors Corporation has invested in a project which is expected to payback the following cash

flows over the next four years. What is the present value of these cashflow if the discount rate is 15%?

Year	Cashflow
1	$1256
2	$1100
3	$925
4	$730

Expert Solution

Year	Cash Flow	Present Value factor @ 15%	Present Value
	(i)	(ii)	(i) X (ii)
1	$ 1,256	0.86957	$ 1,092
2	$ 1,100	0.75614	$ 832
3	$ 925	0.65752	$ 608
4	$ 730	0.57175	$ 417
Total Present Value of cash Inflows		=	$ 2,950

Therefore,
Total Present Value of cash Inflows is $2,950

ekkarill92 answered 1 year ago

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General Motors Corporation has invested in a project which is expected to payback the following cash...

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