Question

3. Over the next 3 years end, you are to receive $200, $400, and $600. If...

3. Over the next 3 years end, you are to receive $200, $400, and $600. If you can invest at 5%, what is the present value of the 3 future cash flows? can you show step by step process please

Homework Answers

Answer #1
A B A*B
Year Cash Inflow Discount Factor @ 5% Present Value
1                 200 0.95             190.48
2                 400 0.91             362.81
3                 600 0.86             518.30
Present Value         1,071.59
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