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2. What is the present value of the following set of cash flows if the discount rate is 11.5% per year? Year 0 1 2
2. What is the present value of the following set of cash flows if the discount rate is 11.5% per year?
Year 0 1 2 3 4
Cash Flow 5,000 outflow 900 inflow 0 3,500 inflow 2,500 inflow
a. $16.81 inflow
b. $268.37 inflow
c. $425.93 inflow
d. $50.44 outflow
e. $16.98 outflow
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