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

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

Quizplus · Accepted Answer

I/YR = 12.0%
 $\begin{array}{lcccccc} 
& 0 & 1 & 2 & 3 & 4 \
\ \text { CFs: } & \$ 0 & \$ 1,500 & \$ 3,000 & \$ 4,500 & \$ 6,000 \
\text { PV of CFs: } & \$ 0 & \$ 1,339 & \$ 2,392 & \$ 3,203 & \$ 3,813
\end{array}$
 $$\begin{array} { l l } 
p V = \$ 10,747 & \text { Found using the Excel NPV function } \
\hline \mathbf { p V } = \$ 10,747 & \text { Found by sumrung individual pV5. } \
\hline \mathbf { V } = \$ 10,747 & \text { Found using the calculator NPVkey. }
\end{array}$$

What Is the Present Value of the Following Cash Flow