What is the value on 1/1/95 of the following cash flows? Date Cash Received Amount of Cash 12/31/96 $100 12/31/97 $200 12/31/98 $100 12/31/99 $100 12/31/00 $100 Use a 10% discount rate and round your answer to the nearest $1.
What is the value on 1/1/95 of the following cash flows?
Date Cash Received Amount of Cash
12/31/96 $100
12/31/97 $200
12/31/98 $100
12/31/99 $100
12/31/00 $100
Use a 10% discount rate and round your answer to the nearest $1.
We need to discount the cash flows to find their present value as on 1/1/95. We can sum them to find the total net present value.
Since we need to find the PV at a date two years previous to the first date mentioned, we will assume this is year 0. The earliest payment is therefore at the end of year 2, and the last payment is at the end of year 6.
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