In: Finance
Your local travel agent is advertising an upscale winter vacation package for travel three years from now to Antarctica. The package requires that you pay $15944 today, $12933 one year from today, and a final payment of $24039 on the day you depart three years from today. What is the cost of this vacation in today's dollars if the discount rate is 4 %? (Round answer to 2 decimal places. Do not round intermediate calculations).
Year | Cash flow | PVIF@4% | Present value |
0 | $ 15,944 | 1.000 | $ 15,944.00 |
1 | $ 12,933 | 0.962 | $ 12,435.58 |
2 | $ - | 0.925 | $ - |
3 | $ 24,039 | 0.889 | $ 21,370.58 |
Cost of vacation in today's dollars | $ 49,750.16 |