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
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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