What is the present value of the following cash flow at a discount rate of 9%?
$$\begin{array} { c c c }
\text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
\$ 100,000 & \$ 150,000 & \$ 200,000
\end{array}$$
A) $372,431.81
B) $450,000
C) $405,950.68
D) None of the above

Question

What is the present value of the following cash flow at a discount rate of 9%?
$$\begin{array} { c c c } 
\text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
\$ 100,000 & \$ 150,000 & \$ 200,000
\end{array}$$
A) $372,431.81
B) $450,000
C) $405,950.68
D) None of the above

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula: PV = CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3. Substituting the given values: PV = 100,000/(1+0.09)^1 + 150,000/(1+0.09)^2 + 200,000/(1+0.09)^3 = $372,431.81.

What Is the Present Value of the Following Cash Flow Year 1 Year 2 Year 3 $100,000$150,000$200,000\begin{array} { c c c } \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\$ 100,000 & \$ 150,000 & \$ 200,000\end{array} Year 1 $100,000​ Year 2 $150,000​ Year 3 $200,000​

What Is the Present Value of the Following Cash Flow $\begin{array} { c c c } \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\$ 100,000 & \$ 150,000 & \$ 200,000\end{array}$