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What is the present value of twenty-five $700 cash flows that occur at the end of...

What is the present value of twenty-five $700 cash flows that occur at the end of each year for the next 25 years at an annual interest rate of 8% compounded annually? The first cash flow occurs one year from now.

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Answer #1

THE SOLUTION IS AS FOLLOWS-

WE CALCULATED THE PVF FOR EVERY 25 YEAR AS SHOWN ABOVE USING CALCULATOR AND THEN TOOK THE GRAND TOTAL OF IT.

AND THAT VALUE IS MULTIPLIED BY THE CASH FLOW AND THE RESULTING VALUE IS OUR PRESENT VALUE

HERE THE PRESENT VALUE OF 25 700 CASH FLOWS IS 7472.34

HOPE IT WAS HELPFUL FOR YOU. PLEASE GIVE IT A LIKE. THANKYOU!

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