Question

You receive $10,000 now for an investment that will give you cash flows of $1000 in...

You receive $10,000 now for an investment that will give you cash flows of $1000 in one year, $2000 in two years, $3000 in three years, and $4000 in four years. If the discount rate is 5% then what is the PV of this investment? (Enter the answer in dollar format without $ sign or thousands comma -> 3519.23 and not $3,519.23 or 3,519.23)

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Answer #1

Present value of future value standing at nth year = future value /(1+r)^n

Where r = discount rate

Discounting factor for n year = 1/(1+r)^n

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