Question

In: Finance

If you expect to receive $100 in one year from now, $200 two years from now,...

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%

Solutions

Expert Solution

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


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