Question
The significance of present value is quite vital in the financial world of the business. Calculate the present value of the cash flow, discounting at
The significance of present value is quite vital in the financial world of the business. Calculate the present value of the cash flow, discounting at the rate given and assuming that the cash flow is received at the end of the period noted. For instance, if the amount of cash flow is 7,000 with the discounting rate of 12% and end of periods are 4 years. For the second, condition, the amount of cash flow is 28,000 with the discounting rate of 8% and end of periods are 20 years, while under third condition, the amount of cash flow is 10,000 with the discounting rate of 14% and end of periods are 12 years. For the fourth condition, the amount of cash flow is 150,000 with the discounting rate of 11% and end of periods are 6 years. Finally, the amount of cash flow is 45,000 with the discounting rate of 20% and end of periods are 8 years.
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