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Ashley expects to receive cash flows of $200, $600, $600, and ($200) at the end of...

  1. Ashley expects to receive cash flows of $200, $600, $600, and ($200) at the end of each period over the next 4 years, respectively. Assuming a 6 percent discount rate, what is the present value of these cash flows? (10 points)

Solutions

Expert Solution

Year Cash Flow PV Factor PV Of Cash Flow
a b c=1/1.06^a d=b*c
1 $        200 0.94340 $                 188.68
2 $        600 0.89000 $                 534.00
3 $        600 0.83962 $                 503.77
4 $      -200 0.79209 $               -158.42
Present Value $             1,068.03
NOTE: ASK YOUR QUERIES.PLEASE DO UPVOTE

jeff jeffy answered 1 year ago
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