Question

In: Finance

What was the PV of the following cash flows using interest rate = 6.0%.

What was the PV of the following cash flows using interest rate = 6.0%.

Years:                          0                      1                      2                      3                      4

|                      |                      |                      |                      |

Cash Flows:                 $0                 $1,000              $2,000              $2,000              $2,000

a.   $5,987

b.   $6,276

c.    $6,505

d.   $6,730

Solutions

Expert Solution

Answer : $ 5987

Calculation is given in the below attached image

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