HW 2E

Question 1

This set of problems is designed to be calculated using the Excel or financial calculator. You can also use algebraic formulas. Do not use financial tables to calculate these problems.

You are given an investment to analyze. The cash flows from this investment are

End of year

1.$2,380

2.$2,900

3.$20,990

4.$3,750

5.$3,790

What is the present value of this investment if 5 percent per year is the appropriate discount rate?

Round the answer to two decimal places.

Your Answer: