Question
You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows
You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 8.3 percent, compounded annually.
End of year:
1.$4882
2.$1067
3.$4555
4.$3691
What is the present value of this investment if 8.3 percent per year is the appropriate discount rate?
Round the answer to two decimal places.
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
