What is the value on 1/1/13 of the following cash flows: Date Cash Received Amount of...

What is the value on 1/1/13 of the following cash flows: Date Cash Received Amount of Cash 1/1/14 $14,000 1/1/15 $20,000 1/1/16 $30,000 1/1/17 $43,000 1/1/18 $57,000 Use a 7.5% discount rate, and round your answer to the nearest $10.

Expert Solution

Ans $ 126380

Date	Year	Project Cash Flows (i)	DF@ 7.5%	DF@ 7.5% (ii)	PV of Project A ( (i) * (ii) )

01-01-2014	1	14000	1/((1+7.5%)^1)	0.930	13,023.26
01-01-2015	2	20000	1/((1+7.5%)^2)	0.865	17,306.65
01-01-2016	3	30000	1/((1+7.5%)^3)	0.805	24,148.82
01-01-2017	4	43000	1/((1+7.5%)^4)	0.749	32,198.42
01-01-2018	5	57000	1/((1+7.5%)^5)	0.697	39,703.84
			PV		1,26,380.99

jeff jeffy answered 1 year ago

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