You will be receiving cash flows of: $1,000 today,$2,000 at end of year 1,$4,000 at end of year 3,and $6,000 at end of year 5.What is the present value of these cash flows at an interest rate of 7%?
A) $9,731.13
B) $10,412.27
C) $10,524.08
D) $11,524.91

Question

Quizplus · Accepted Answer

PV = FV / (1 + r)^tPV = $1,000 + $2,000 / 1.07¹ + $4,000 / 1.07³ + $6,000 / 1.07⁵PV = $10,412.27

You Will Be Receiving Cash Flows Of: $1,000 Today,$2,000 at End