Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

From from the picture (uneven cash flows), suppose now CF=50 at t=4, but other values are the same. Find the PV by using a present

image text in transcribed

From from the picture (uneven cash flows), suppose now CF=50 at t=4, but other values are the same. Find the PV by using a present value formula. Hint: I = 4% = 0.04 and N = 4. Cash flow (CF) for each period is: CF1 = 100; CF2 = 300; CF3 = 300 and CF4 = 50. Make sure to present your calculation.

0 4 4% 1 + 2 + 3 + 100 300 300 -50 96.15 277.37 266.70 -42.74 597.48 = PV

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books