Question
Anky Beverage Co. expects the following cash flows from its manufacturing plant in Palau over the next six years. Year 1: $100,000 Year 2: $20,000
Anky Beverage Co. expects the following cash flows from its manufacturing plant in Palau over the next six years.
Year 1: $100,000
Year 2: $20,000
Year 3: $180,000
Year 4: $300,000
Year 5: $550,000
Year 6: $375,000
The CFO of the company believes that an appropriate annual interest rate on this investment is 4%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar?
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
