Question

In: Finance

You are considering a project with cash flows of $1,200, $2,800, $2,300, $1,600, at the end...

You are considering a project with cash flows of $1,200, $2,800, $2,300, $1,600, at the end of each year for the next four years. What is the present value of these cash flows , given a discount rate of 15% ? (Round answers to two decimals with any characters such as $, or , for example: 1234.56 )

Solutions

Expert Solution

Year Cashflows Present Value of Cashflows
1 $ 1,200.00 $                                     1,043.48
2 $ 2,800.00 $                                     2,117.20
3 $ 2,300.00 $                                     1,512.29
4 $ 1,600.00 $                                         914.81
Present Value $                                     5,587.77
Rate of Interest 15%

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