In: Finance
An investment offers $13800 per year for 5 years, with the first payment occurring 8 years from now. If the required return is 15 percent, what is the value of the investment?
Discount rate | 15.0000% | ||
Cash flows | Year | Discounted CF= cash flows/(1+rate)^year | Cumulative cash flow |
- | 0 | - | - |
- | 1 | - | - |
- | 2 | - | - |
- | 3 | - | - |
- | 4 | - | - |
- | 5 | - | - |
- | 6 | - | - |
- | 7 | - | - |
13,800.000 | 8 | 4,511.24 | 4,511.24 |
13,800.000 | 9 | 3,922.82 | 8,434.07 |
13,800.000 | 10 | 3,411.15 | 11,845.21 |
13,800.000 | 11 | 2,966.22 | 14,811.43 |
13,800.000 | 12 | 2,579.32 | 17,390.75 |
Value of investment = 17,390.75