Assume a project will produce cash flows of $12,079, $20,823, $36,524 at the end of Years...

Assume a project will produce cash flows of $12,079, $20,823, $36,524 at the end of Years 1 to 3, respectively. If the discount rate is 12 percent, what is the current value of these cash flows?

Expert Solution

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

=12079/1.12+20823/1.12^2+36524/1.12^3

which is equal to

=$53381.85(Approx)

jeff jeffy answered 2 years ago

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