1) You receive $10,000 now for an investment that will give you cash flows of $1000...

1) You receive $10,000 now for an investment that will give you cash flows of $1000 in one year, $2000 in two years, $3000 in three years, and $4000 in four years. If the discount rate is 5% then what is the PV of this investment? (Enter the answer in dollar format without $ sign or thousands comma -> 3519.23 and not $3,519.23 or 3,519.23)

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Expert Solution

Ans 18648.76

Year	Project Cash Flows (i)	DF@ 5%	DF@ 5% (ii)	PV of Project ( (i) * (ii) )
0	10000	1	1	10,000.00
1	1000	1/((1+5%)^1)	0.952381	952.38
2	2000	1/((1+5%)^2)	0.907029	1,814.06
3	3000	1/((1+5%)^3)	0.863838	2,591.51
4	4000	1/((1+5%)^4)	0.822702	3,290.81
		NPV	18,648.76

jeff jeffy answered 1 year ago

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