4.5 Find the present value of the following stream of cash flows, assuming the firm's opportunity...

Question

4.5 Find the present value of the following stream of cash flows, assuming the firm's opportunity cost is 20%._________________Years Amount__________________1-6 $23,0007-10 $58,000

Robert · Accepted Answer

SOLUTIONS
The total present value of the cash flows is $183,815
Present Value of annuity payments = Annual payment x Present Value Annuity Factor (PVAF) 
Years Amount PVAF@12% Present Value 
1 - 6 $23,000 4.111 $94,553 
7 - 10 $58,000 1.539 $89,262 
   $183,815

4.5 Find the present value of the following stream of cash flows, assuming the firm's opportunity cost is 20%. _ Years Amount __ 1-6 $23,000 7-10 $58,000

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4.5 Find the present value of the following stream of cash flows, assuming the firm's opportunity cost is 20%. _________________ Years Amount __________________ 1-6 $23,000 7-10 $58,000

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Answer To This Question Is Available To Download

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4.5 Find the present value of the following stream of cash flows, assuming the firm's opportunity cost is 20%. _ Years Amount __ 1-6 $23,000 7-10 $58,000