question archive Not yet answered Marked out of 10
Not yet answered Marked out of 10
Subject:FinancePrice:2.86 Bought3
Not yet answered Marked out of 10.00 P Flag question Anne Lockwood, manager of Oaks Mill Jewelry, wants to receive $90,000, $100,000, $120,000, $140,000, $150,000 and 110,000 respectively at the end of each year of six years. Find out the present value of this stream of uneven cash flows, if the investor's interest rate is 10%
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|
Year |
Cash Flow | PVF@ 10% | Present Value |
| 1 | 90,000 | 0.9091 | 81,819 |
| 2 | 100,000 | 0.8264 | 82,640 |
| 3 | 120,000 | 0.7513 | 90.156 |
| 4 | 140,000 | 0.6830 | 95,620 |
| 5 | 150,000 | 0.6209 | 93.135 |
| 6 | 110,000 | 0.5645 | 62,095 |
| Present Value | $505,465 |
