An investment offers the following cash flows: $554 today, $182 one year from now, $482 in 2 years, and $793 in 3 years. If the relevant interest rate is 7% per year (an APR, with interest compounded annually), what is the value of the investment 3 years from today (immediately after the cash flow at "year 3" occurs)?

Answer rating: 100% (QA)

We can analyze this problem using the concept of Net Present Value NPV but with a twist Typ... View the full answer