You are given an investment to analyze. the cash flows from this investment are end of year 1. $19,340 2. $2,280 3. $26,600 4. $

Question

3 years ago

8

24,240 5. $8,770 what is the present value of this investment if 15 percent per year is the appropriate discount rate?

1 answer:

AleksandrR [38] · Answer 1 · 2022-02-01T05:01:20+03:00

6 0

PW = FW×(1+i)^-n

PW = $19340×1.15^-1 + $2280×1.15^-2 + $26600×1.15^-3 + $24240×1.15^-4 + $8770×1.15^-5 = $54250.90

hence PW = $54250.90