Business Finance
Math question Help Needed

Question Description

James identified a project with the following cash flows. What is the present value of the cash flows at time 0 if the interest rate is 9%?

Year 1/ $2000, Year 2/ $650, Year 3/ $375, Year 4/ $1200

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Final Answer

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Year

Cash flow

PVIF9%, n

PV


0.917*2000

1834

0.842*650

547.3

0.775*375

290.62

0.708*1200

849.6


3522




pv=3522









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David M. (442)
Purdue University

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