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You are presented with an investment opportunity that will give you the following stream of cash...

You are presented with an investment opportunity that will give you the following stream of cash flows: nothing for the next 2 years; at the following year, an amount of $5,000 per year until year 14; and then an amount of $8,000 per year until year 22. If your required rate of return (APR) is 9% compounded annually, what is the present value today of these cash flows?

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Expert Solution

We know that,

Present Value = Amount / (1+ rate)^ years

Please let me know in case you have any queries and I will be happy to assist you.

jeff jeffy answered 1 year ago
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