What is the present value of the following cash flow stream at a rate of 8.0%?
A) $7,917
B) $8,333
C) $8,772
D) $9,233
E) $9,695

Question

Quizplus · Accepted Answer

I/YR = 8.0%
 $\begin{array}{lllll}
&0&1&2&3\
\hline \text { CFs: } & \$ 750 & \$ 2,450 & \$ 3,175 & \$ 4,400 \
\text { PV of CFs: } & \$ 750 & \$ 2,269 & \$ 2,722 & \$ 3,493
\end{array}$
$\begin{array}{lll}
\mathrm{PV}=\$9,233  &\text { Found by summing individual PVs. }\
&\text { Found with a calculator or Excel to automate the process. }\
\mathrm{PV}=\$9,233& \text { With a calculator, input the cash flows and I into the cash } \
&\text { flow register then press the NPV key. }
\end{array}$

What Is the Present Value of the Following Cash Flow