What is the present value of the following cash flows at a discount rate of 9 percent? $\begin{array} { c c c }
\text { Year 1 } & \text { Year } 2 & \text { Year 3 } \
\$ 100.000 & \$ 150.000 & \$ 200,000
\end{array}$
A)$372,431.81
B)$450,000.00
C)$405,950.68
D)$412,844.04

Question

What is the present value of the following cash flows at a discount rate of 9 percent? $\begin{array} { c c c } 
\text { Year 1 } & \text { Year } 2 & \text { Year 3 } \
\$ 100.000 & \$ 150.000 & \$ 200,000
\end{array}$
A)$372,431.81
B)$450,000.00
C)$405,950.68
D)$412,844.04

Quizplus · Accepted Answer

The present value of each cash flow is calculated using the formula $PV = \frac{FV}{(1 + r)^n}$, where $FV$ is the future value, $r$ is the discount rate, and $n$ is the year. Calculating for each year and summing them gives the total present value: $PV = \frac{100,000}{(1.09)^1} + \frac{150,000}{(1.09)^2} + \frac{200,000}{(1.09)^3} = 91,743.12 + 126,008.93 + 154,679.76 = 372,431.81$.

What Is the Present Value of the Following Cash Flows Year 1 Year 2 Year 3 $100.000$150.000$200,000\begin{array} { c c c } \text { Year 1 } & \text { Year } 2 & \text { Year 3 } \\\$ 100.000 & \$ 150.000 & \$ 200,000\end{array} Year 1 $100.000​ Year 2$150.000​ Year 3 $200,000​

What Is the Present Value of the Following Cash Flows $\begin{array} { c c c } \text { Year 1 } & \text { Year } 2 & \text { Year 3 } \\\$ 100.000 & \$ 150.000 & \$ 200,000\end{array}$