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Consider the following finite set of annual cash flows. 0 1 2 3 $1200 $3500 $1200 $1200 5 years - $4800 Assume a required
Consider the following finite set of annual cash flows. 0 1 2 3 $1200 $3500 $1200 $1200 5 years - $4800 Assume a required rate of return (interest rate, discount rate) of 8% per year, compounded annually. What is the total present value (PV) of this set of cash flows? Consider the following set of finite set of semi-annual cash flows. 0 2 3 4 |------------------ 5 half years -1 $221 $0 $175 - $100 $100 Assume a required rate of return (interest rate, compounding rate) of 6% per year, compounded semi-annually. What is the total present value (PV) of this set of cash flows?
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