PV of Multiple Cash Flows Example Your auto dealer gives you the choice to pay $15,500 cash now, or make three payments: $8,000 now and $4,000 at the end of the following two years. If your cost of money is 8%, which do you prefer? (1+.08) Immediate payment 8,000.00 PV = 4,000 - 3,703.70 PV, = 4.000 = 3,429.36 Total PV = $15,133.06 Tr a n Hill Dragant Value of Annuity Stream