Question content area top

Part 1

a. What is the present value of the following set of cash flows, discounted at

10.8%

per year?

Year	1	2	3	4	5
CF	$12	$24	$36	$48	$60

b. What is the present value of the following set of cash flows, discounted at

10.8%

per year?

Year	1	2	3	4	5
CF	$60	$48	$36	$24	$12

c. Each set contains the same cash flows

($12,

$24,

$36,

$48,

$60),

so why is the present value different?

Question content area bottom

Part 1

a. What is the present value of the following set of cash flows, discounted at

10.8%

per year?

Year	1	2	3	4	5
CF	$12	$24	$36	$48	$60

The present value of the cash flow stream is

$enter your response here.

(Round to the nearest cent.)