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Some of the following future cash flows have been expressed in then-current (future) dollars and others in CV dollars. Use an interest rate of
Some of the following future cash flows have been expressed in then-current (future) dollars and others in CV dollars. Use an interest rate of 10% per year and an inflation rate of 3% per year. Find the present worth with all cash flows expressed in future dollars. Year Cash flow, $ 0 17,500 Expressed as CV 3 45,500 Then-current 4 7 13,500 27,500 Then-current CV The present worth with all cash flows expressed in future dollars is $ 89489.55
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