In: Finance
You are given an investment to analyze. The cash flows from this investment are
End of year
1. $23,820
2. $2,250
3. $5,750
4. $13,840
5. $3,240
What is the present value of this investment if 5 percent per year is the appropriate discount rate?
Round the answer to two decimal places.
Year | Cash flow | × factor@ 5.00% | Present value |
0 | $ - | 1.0000 | $ - |
1 | $ 23,820.00 | 0.9524 | $ 22,685.71 |
2 | $ 2,250.00 | 0.9070 | $ 2,040.82 |
3 | $ 5,750.00 | 0.8638 | $ 4,967.07 |
4 | $ 13,840.00 | 0.8227 | $ 11,386.20 |
5 | $ 3,240.00 | 0.7835 | $ 2,538.62 |
$ - | |||
Present value | $ 43,618.42 |
Present value of this investment is $43,618.42