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30 July, 11:47

You are given an investment to analyze. the cash flows from this investment are end of year 1. $19,340 2. $2,280 3. $26,600 4. $24,240 5. $8,770 what is the present value of this investment if 15 percent per year is the appropriate discount rate?

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  1. 30 July, 12:01
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    PW = FW * (1+i) ^-n

    PW = $19340*1.15^-1 + $2280*1.15^-2 + $26600*1.15^-3 + $24240*1.15^-4 + $8770*1.15^-5 = $54250.90

    hence PW = $54250.90
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