You are scheduled to receive annual payments of $3,600 for each of the next 12 years...

You are scheduled to receive annual payments of $3,600 for each of the next 12 years (you are going to receive the payments at the end of each year). The discount rate is 10 percent. What is the present value of these cash flows? Round the answer to two decimal places.

Expert Solution

Answer: To calculate the present value of future cash inflows we need to discount the future cash flows with discount rate i.e. 10 %. After discounting all the cash flows of 12 years present value comes to $ 24526.80.

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