Consider an investment project where the cash flow pattern repeats itself every five years forever. Use...

Consider an investment project where the cash flow pattern repeats itself every five years forever. Use the capitalized equivalent method to compute the present worth of this project with an interest rate of 16.5%.
The cash flow for the five years is given below: ($)
106
106
67
67
29

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Expert Solution

Year	Cash Flow	PVF at 16.5%	PV
1	106.00	0.8584	90.99
2	106.00	0.7368	78.10
3	67.00	0.6324	42.37
4	67.00	0.5429	36.37
5	29.00	0.4660	13.51
Present Value			261.35

jeff jeffy answered 2 years ago

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