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ArbitrLikvidat [17]
3 years ago
6

Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near ter

m. He anticipates his first annual cash flow from the technology to be $176,000, received two years from today. Subsequent annual cash flows will grow at 3.6 percent in perpetuity. What is the present value of the technology if the discount rate is 9 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Licemer1 [7]3 years ago
7 0

Answer:

PV=148135,68

Explanation:

PV Present Value

CF Cash Flow

r the periodic rate of return

n   Number of periods

PV= CF/(1+r)n

PV= 176000/(1+9%)2

PV=148135,68

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We now use our financial calculator and input these amounts into the calculator.

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