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What is the value on 1/1/13 of the following cash flows: Date Cash Received Amount of...

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What is the value on 1/1/13 of the following cash flows: DateCash Received Amount of Cash 1/1/14 $14,000 1/1/15 $20,000 1/1/16$30,000 1/1/17 $43,000 1/1/18 $57,000 Use a 7.5% discount rate, andround your answer to the nearest $10.

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4.3 Ratings (662 Votes)

Ans $ 126380

Date Year Project Cash Flows (i) DF@ 7.5% DF@ 7.5% (ii) PV of Project A ( (i) * (ii) )
01-01-2014 1 14000 1/((1+7.5%)^1) 0.930                     13,023.26
01-01-2015 2 20000 1/((1+7.5%)^2) 0.865                     17,306.65
01-01-2016 3 30000 1/((1+7.5%)^3) 0.805                     24,148.82
01-01-2017 4 43000 1/((1+7.5%)^4) 0.749                     32,198.42
01-01-2018 5 57000 1/((1+7.5%)^5) 0.697                     39,703.84
PV                  1,26,380.99

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What is the value on 1/1/13 of the following cash flows: DateCash Received Amount of Cash 1/1/14 $14,000 1/1/15 $20,000 1/1/16$30,000 1/1/17 $43,000 1/1/18 $57,000 Use a 7.5% discount rate, andround your answer to the nearest $10.

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