You are scheduled to receive a $1,000 cash flow in one year, a $1,500 cash flow...

You are scheduled to receive a $1,000 cash flow in one year, a $1,500 cash flow in two years, and pay a $700 payment in three years. If interest rates are 8 percent per year, what is the combined present value of these cash flows? (Round your answer to two decimal places.)

Expert Solution

Present value=Cash flows*Present value of discounting factor(rate%,time period)

=1000/1.08+1500/1.08^2-700/1.08^3

which is equal to

=$1656.25(Approx)

jeff jeffy answered 2 years ago

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