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 discount
ed at 12%? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)
1 answer:
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
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