Obama Ltd has made an investment that is expected to generate a cash flow of $20,000 each

Question:

Obama Ltd has made an investment that is expected to generate a cash flow of $20,000 each year for the next five years. If Obama uses a discount rate of 5% on this investment, the present value of this investment for Obama is (to the nearest dollar):

a. $86,590

b. $101,766

c. $101,154

d. $101,000

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: