Question
Use Excels NPV command to determine the present value of the following mixed-set of cash flows. Youll pay $-1,700 immediately (i.e. a negative cash flow).
Use Excels NPV command to determine the present value of the following mixed-set of cash flows. Youll pay $-1,700 immediately (i.e. a negative cash flow). Thereafter, at the end of the 5th year youll receive a single payment of $682. Thereafter, once again, youll receive nothing for a while. Then 12 years from today, youll begin to receive payments from an annuity stream. The first payment will be $285. The last payment will be received 22 years from today. The payments that comprise the annuity stream are all of the same magnitude (g = 0). Using an effective annual discount rate (EAR) of 10.1%, determine the present value of the entire set of cash flows.
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