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What is the present value at 6.8% discount of a cash flow at t = 1 of $1,050 followed by three more consecutive cash flows
What is the present value at 6.8% discount of a cash flow at t = 1 of $1,050 followed by three more consecutive cash flows of $1,950 (at t = 2, 3, and 4). (Hint: First draw a time diagram, and then use the formula for PV of an annuity followed by a single discount to year 0.)
$5,986.81
$5,757.84
$5,792.30
$5,860.52
$5,876.15
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