Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You a reviewing an investment and you expect that in 3-years time you will receive a return of $25,000 and you expect to receive this

You a reviewing an investment and you expect that in 3-years time you will receive a return of $25,000 and you expect to receive this $25,000 per year for another 3 years beyond the first return (a total of 4 years of $25,000 in cash flows). Calculate the present value of these future cash flows. Assume a discount rate of 6%. Round your final answer to the nearest dollar.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Governing The Modern Corporation Capital Markets Corporate Control And Economic Performance

Authors: Roy C. Smith, Ingo Walter

1st Edition

0195171675,0199924015

More Books

Students also viewed these Finance questions

Question

=+factors likely caused the shift? e

Answered: 1 week ago

Question

Briefly describe vegetative reproduction in plants.

Answered: 1 week ago

Question

1. What are the peculiarities of viruses ?

Answered: 1 week ago