Question

If you are going to receive $70,000 for 20 years starting 5 years from now, what is the present value of the cash flows discounted at 12%? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)

Answer 1

Answer:

336,405.28

Explanation:

Present value can be found by discounting the cash flows at the discount rate.

Present value can be found using a financial calculator:

Cash flow from year 1 to 4 = 0

Cash flow from year 5 -25 = $70,000

Discount rate = 12%

Present value = $336,405.28

I hope my answer helps you