A B D E F G H K Continuously compounded discount rate 15% Compute the continuously compounded present value of the following set of cash flows, using a discount rate of 15%. Present value Date 1 2 3 4 5 6 7 Cash flow 15,000 22,000 14,750 3,222 6,333 18,000 280,000 Present value Continuously compounded discount rate Date today 15% 1-Jan-06 Time (years) from today Present value Date 31-Jan-06 31-Jan-07 17-Jul-07 31-Dec-07 14-Mar-08 11-Nov-08 13-Mar-09 Cash flow 15,000 22,000 14,750 3,222 6,333 18,000 280,000 Present value Hint: use 365-day per year convention