In: Finance
If you expect to receive $100 in one year from now, $200 two years from now, and $150 three years from now, How much this cash flow is worth today if the interest rate is 10%
| Year | Cash flow | × factor@ 10.00% | Present value |
| 0 | $ - | 1.0000 | $ - |
| 1 | $ 100.00 | 0.9091 | $ 90.91 |
| 2 | $ 200.00 | 0.8264 | $ 165.29 |
| 3 | $ 150.00 | 0.7513 | $ 112.70 |
| $ - | |||
| Total | $ 368.90 |
Answer is:
368.90