Question
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are asfollows:
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are asfollows:
| Investment | |||||||||
| End of Year | A | B | C | ||||||
| 1 | $2,000 | $ | 1,000 | $ | 5,000 | ||||
| 2 | 3,000 | 1,000 | 5,000 | ||||||
| 3 | 4,000 | 1,000 | (5,000) | ||||||
| 4 | (5,000) | 1,000 | (5,000) | ||||||
| 5 | 5,000 | 3,000 | 15,000 | ||||||
What is the present value of investment A at an annual discount rate of 99 percent?
$____________________________ (Round to the nearest cent.)
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The Handbook Of Financial Modeling
Authors: Jack Avon
2nd Edition
1484265394, 978-1484265390
