Calculate the present value (PV ) of a cash inflow of $500 in one year, and a cash inflow of $1,000 in 5 years, assuming a discount rate of 15%.

Expert Solution

present value (PV ) of a cash inflow	931.96
Statement showing Cash flows
Particulars	Time	PVF 15%	Amount	PV
Cash Flows	1.00	0.8696	500.00	434.78
Cash Flows	2.00	0.7561		-
Cash Flows	3.00	0.6575		-
Cash Flows	4.00	0.5718		-
Cash Flows	5.00	0.4972	1,000.00	497.18
Present value of Cash flows				931.96

jeff jeffy answered 2 years ago

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