question archive What is the present worth of cash flows that begin at $20,000 and increase at 7% per year for 10 years? The interest rate is 9%
What is the present worth of cash flows that begin at $20,000 and increase at 7% per year for 10 years? The interest rate is 9%
Subject:EconomicsPrice:2.87 Bought7
What is the present worth of cash flows that begin at $20,000 and increase at 7% per year for 10 years? The interest rate is 9%.
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Answer:
| Year | Cash flows | PVF @ 9% | Present value | |
| 1 | 20000 | 0.917431 | 18348.62 | |
| 2 | 21400 | 0.84168 | 18011.95 | |
| 3 | 22898 | 0.772183 | 17681.46 | |
| 4 | 24500.86 | 0.708425 | 17357.03 | |
| 5 | 26215.92 | 0.649931 | 17038.55 | |
| 6 | 28051.03 | 0.596267 | 16725.92 | |
| 7 | 30014.61 | 0.547034 | 16419.02 | |
| 8 | 32115.63 | 0.501866 | 16117.75 | |
| 9 | 34363.72 | 0.460428 | 15822.01 | |
| 10 | 36769.18 | 0.422411 | 15531.7 | |
| Present value f inflows | 169054 | |||
