3 years from now you will begin receiving annual payments of $7200. This will continue for 13 years. At a discount rate of 5.8%, what is the present value of this stream of cash flows?

Thank you for the opportunity to help you with your question! Hi, He observes that work expands so as to fill the time available for its completion.

Hi,

Below is the solution

Pv of an annuity =C*(1-(1+i)^-n)/i)

Three years from now if you receive $7200

Time 13-3 =10 years

int rate = 5.8%

Therefore

we will have

7200*(1-(1.058)^-10)/0.058)

7200*1-0.569/0.058

7200*7.431

present value of this stream of cash flows will be

= $53503.45

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