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ou are given the following stream of cash flows: Year 1 Year 2 Year 3 Year...

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Finance

ou are given the following stream of cash flows: Year 1 Year 2Year 3 Year 4 Year 5 $100,000 $110,000 $120,000 $130,000 $140,000A. If you thought the appropriate discount rate was 10%, what wouldbe the present value of this cash flow stream today at t=0? B. Ifyou thought the appropriate interest/discount rate was 10%, whatwould be the future value of this cash flow stream in five years att=5 years?

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4.3 Ratings (921 Votes)
Present Value calculation Present Value is calculated using the below formula PV Cn1rn where r is the discount rate Cn is the cash flow at year n C1 100000 C2 110000 C3 120000 C4 130000 C5 140000 Present value of C1 1000001101 100000111    See Answer
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Transcribed Image Text

ou are given the following stream of cash flows: Year 1 Year 2Year 3 Year 4 Year 5 $100,000 $110,000 $120,000 $130,000 $140,000A. If you thought the appropriate discount rate was 10%, what wouldbe the present value of this cash flow stream today at t=0? B. Ifyou thought the appropriate interest/discount rate was 10%, whatwould be the future value of this cash flow stream in five years att=5 years?

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