What is the present value of the following mixed cash flow stream if interest is 6% (rounded)?
A) $25,370
B) $19,813
C) $21,225
D) $18,750

Name: What is the present value of the following mixed cash flow stream if interest is 6% (rounded)? A) $25,370 B) $19,813 C) $21,225 D) $18,750
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Question

What is the present value of the following mixed cash flow stream if interest is 6% (rounded)? 
A) $25,370 
B) $19,813 
C) $21,225 
D) $18,750

Quizplus · Accepted Answer

Solution using a calculator:
CF0 = 0
CF1 = 5,000
CF2 = 8,000
CF3 = 9,500
I = 6
Solve for NPV = $19,813 by calculator.

What Is the Present Value of the Following Mixed Cash