Question
a. What is the present value of the following set of cash flows, discounted at 10% per year? YEAR 1 2 3 4 5 CF
a. What is the present value of the following set of cash flows, discounted at 10% per year?
| YEAR | 1 | 2 | 3 | 4 | 5 |
| CF | 10 | 20 | 30 | 40 | 50 |
b.) What is the present value of the following set of cash flows, discounted at 10% per year?
| YEAR | 1 | 2 | 3 | 4 | 5 |
| CF | 50 | 40 | 30 | 20 | 10 |
c.) Each set contains the same cash flows (10, 20, 30, 40, 50), so why is the present value different?
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Production And Operations Analytics
Authors: Steven Nahmias, Tava Lennon Olsen
8th Edition
1478639261, 9781478639268
