Excellent Yachting will pay $519,799.59.
<h3>What will be the calculation of resent value of a lump sum?</h3>
The calculation of the present value of a lump sum for each cashflow considering the 14.5% discount rate would be as follow:
PV=nominal value/(1+i)n
rate: 0.145
Year I, 218,000/(1+0.145)1 = PV
= 190,393.0131
Year II, 224,000/(1+0.145)² = PV
= 170,858.6793
Year III, 238,000/(1+0.145)³ = PV
= 158,547.9011
By adding each PV value together, we will get 190,393.0131+170,858.6793+158,547.9011 = $519,799.59
Learn more about the PV here:-
brainly.com/question/15432294
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