Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You will receive $100 every 6 months for the next 2 years. What is the present value of these cash flows if discounted by the
You will receive $100 every 6 months for the next 2 years. What is the present value of these cash flows if discounted by the following rates: 6 months from now = .50% 12 months from now = .75% 18 months from now = .85% 24 months from now = 1.00% These are annual rates. Use the semi-annual rate to find the present value of each cash flow. Group of answer choices $404.30 $395.77 $391.61 $393.86
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started