You have been offered the opportunity to invest in a project that will pay $2,310 per...

You have been offered the opportunity to invest in a project that will pay $2,310 per year at the end of years one through three and $10,109 per year at the end of years four and five. If the appropriate discount rate is 17.0 percent per year, what is the present value of this cash flow pattern?

Round the answer to two decimal places.

Expert Solution


CACLULATION OF THE PRESENT VALUE OF CASH FLOW

Years	Cash Inflow (A)	PVF of $ 1 @ 17% (B)	Present Value (A XB)
1	$ 2,310	0.8547	$ 1,974.36
2	$ 2,310	0.7305	$ 1,687.49
3	$ 2,310	0.6244	$ 1,442.30
4	$ 10,109	0.5337	$ 5,394.67
5	$ 10,109	0.4561	$ 4,610.83

			$ 15,109.64


Answer = Present Value = $ 15,109.64

ekkarill92 answered 1 year ago

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