In: Finance
Assume the appropriate discount rate for the following cash flows is 10.3 percent. |
Year | Cash Flow |
1 | $2,150 |
2 | 2,050 |
3 | 1,750 |
4 | 1,550 |
What is the present value of the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Ans $ 5985.54
Year | Project Cash Flows (i) | DF@ 10.3% | DF@ 10.3% (ii) | PV of Project ( (i) * (ii) ) |
1 | 2150 | 1/((1+10.3%)^1) | 0.907 | 1,949.23 |
2 | 2050 | 1/((1+10.3%)^2) | 0.822 | 1,685.01 |
3 | 1750 | 1/((1+10.3%)^3) | 0.745 | 1,304.10 |
4 | 1550 | 1/((1+10.3%)^4) | 0.676 | 1,047.20 |
PV | 5,985.54 |