You are considering a project with the following cash flows: What is the present value of these cash flows,given a 3% discount rate?
A) $13,732.41
B) $13,812.03
C) $14,308.08
D) $14,941.76
E) $14,987.69

Question

You are considering a project with the following cash flows:  What is the present value of these cash flows,given a 3% discount rate?
A) $13,732.41 
B) $13,812.03 
C) $14,308.08 
D) $14,941.76 
E) $14,987.69

Quizplus · Accepted Answer

To calculate the present value, we need to discount each of the cash flows by a factor of (1+3%)^n where n is the year in which the cash flow occurs, and then sum them up. After doing these calculations, we get a present value of $13,732.41.

You Are Considering a Project with the Following Cash Flows