Question
You are given the following stream of annual cash flows (year 1 cash flow is at t=1 or exactly one year from today): Year 1
You are given the following stream of annual cash flows (year 1 cash flow is at t=1 or exactly one year from today):
Year 1 = $60,000
Year 2 = $70,000
Year 3 = $80,000
Year 4 = $90,000
Year 5 = $100,000
If you thought the appropriate discount rate was 5%, what would be the present value of this cash flow stream today at t=0? Please Show the Full Work Out process)! (DO NOT USE EXCEL)
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Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
