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You have an opportunity to make an investment that will pay $100 at the end of year 1,$400 at the end of year 2 ,
You have an opportunity to make an investment that will pay $100 at the end of year 1,$400 at the end of year 2 , $400 at the end of year 3 , $400 at the end of year 4 and $300 at the end of year 5. Find the present value of this cash flow stream if the interest rate is 8%. (Hint: You can simply discount each cash flow to the present and then add them up or use the "=NPV function" in Excel or the CF key on your financial calculator a. $1,251.25 b. $1,351.25 c. $1,151.25 d. $1,451.25 a. . b.. c. . d
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