Business Finance
Math question Help Needed

Question Description

Find the present value of the following mixed stream of cash flows using a discount rate of 8%. Assume the cash flow are received at the end of each year. Year 1/ $7000, Year 2/ $3000, Year 3/ $2000. (Round to the nearest cent)

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Final Answer

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Period Cash Flow Present Value
1 7,000.00 6,463.53
2 3,000.00 2,557.79
3 2,000.00 1,574.51
Total: 10,595.83
PVn=CFn/(1+in)^n

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Carnegie Mellon University

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