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You are given the following cash flows: Year 1: 5,000 Year 2: 10,000 Year 4: 8,000 Given a 6% discount rate, which formula would you
You are given the following cash flows: Year 1: 5,000 Year 2: 10,000 Year 4: 8,000 Given a 6% discount rate, which formula would you use to calculate the value of these cash flows as of today? a. (1+.06)15,000+(1+.06)210,000+(1+.06)48,000 b. 5,000(1+.06)+10,000(1+.06)2+10,000(1+.06)4 c. 5,000(1+.06)4+10,000(1+.06)2+10,000(1+.06)2 d. 5,000(1+.06)3+10,000(1+.06)2+8,000(1+.06)
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