In: Finance
Find the present value of the following cash flow stream if the
discount rate is 7.17%: CF1 = 24, CF2 = 41, CF3 = 51, CF4 = 69. The
cash flows are received at the end of each year.
Round to the nearest $0.01 (e.g., if your answer is $175.386,
record it as 175.39).
i | ii | iii=i*ii | |||
Year | Cash Flows | PVIF@ 7.17% | present value | ||
0 | - | 1.0000 | $ - | ||
1 | 24 | 0.9331 | $ 22.39 | ||
2 | 41 | 0.9331 | $ 38.26 | ||
3 | 51 | 0.9331 | $ 47.59 | ||
4 | 69 | 0.9331 | $ 64.38 | ||
NPV = | 172.62 | ||||
answer = | 172.62 |