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

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

Quizplus · Accepted Answer

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

What Is the Present Value of the Following Cash Flow