What is the present value of the following cash flow stream at a rate of 12.0%?
A) $9,699
B) $10,210
C) $10,747
D) $11,284
E) $11,849

Question

Quizplus · Accepted Answer

I/YR = 12.0%
 $\begin{array}{lccccc} 
& 0 & 1 & 2 & 3 & 4 \
\hline \text { CFs: } & \$ 0 & \$ 1,500 & \$ 3,000 & \$ 4,500 & \$ 6,000 \
\text { PV of CFs: } & \$ 0 & \$ 1,339 & \$ 2,392 & \$ 3,203 & \$ 3,813
\end{array}$ 
 $\begin{array} { l l } 
\mathrm { PV } = \$ 10,747 & \text { Found using the Excel NPV furction. } \
\mathrm { PV } = \$ 10,747 & \text { Found by sururning individual PVs. } \
\mathrm { PV } = \$ 10,747 & \text { Found using the calculator NPV key. }
\end{array}$

What Is the Present Value of the Following Cash Flow