Calculate the present value of the following cash flows given a discount rate of 12%:
Year 1 
Year 2 
Year 3 
Year 4 

Cash Flows 
$1,500 
$8,500 
$12,500 
$11,000 
Solution :
Year 1 : PV of cash flow of $ 1,500 at 12 % discount rate = $ 1,339.29
Year 2 : PV of cash flow of $ 8,500 at 12 % discount rate = $ 6,776.15
Year 3 : PV of cash flow of $ 12,500 at 12 % discount rate = $ 8,897.25
Year 4 : PV of cash flow of $ 11,000 at 12 % discount rate = $ 6,990.70
Please find the attached excel sheet containing the detailed calculation of the solution.
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