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Calculate the present value of each cashflow using a discount rate of 7%. Which do you most prefer most? Show and explain all supporting calculations!
Calculate the present value of each cashflow using a discount rate of 7%. Which do you most prefer most? Show and explain all supporting calculations! (6marks)
1. Cashflow A: receive R6000 today and then receive R6000 in four years.
2. Cashflow B: receive R1200 every year, forever, starting today.
3. Cashflow C: pay R5000 every year for five years, with the first payment being next year, and then subsequently receive R3000 every year for 20 years.
4. Cashflow D: receive R900 every other year, forever, with the first payment being next year
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