What is the present value of the following set of cash flows at an interest rate of 7%; $2000 at the end of year one, $4000 at the end of year two, and $6000 at the end of year three?

Q: Am. 114.

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A: Given: Year Cash flows 1 $150 2 $300 3 $500

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A: The presentation of cash inflows and cash outflows in a diagram format is called a cash flow…

Q: What's the FUTURE value of the following cash flows, at 6%/period: 0,200,400,600,800,1000

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A: The (PV) present value of an investment project's projected net cash flows is called NPV.

Q: $500 $500 $500 $500 Year 2 3 i =12% compunded annually B P=?

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A: Year 0 = $1,000Year 1 = $2,000Year 2 = $3,000Year 3 = $4,000Interest rate = 9%

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A: Starting value: $5,000Gradient (g): $1,000i=12%n=5

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A: Present value = Future cash flow / (1 + Discount rate)^Number of years

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.