TIME VALUE OF MONEY. Consider the following cash flow stream. The discount rate up to the end
Fantastic news! We've Found the answer you've been seeking!
Question:
TIME VALUE OF MONEY. Consider the following cash flow stream. The discount rate up to the end of the 4th year is 10¼% while the discount rate for cash flows after the 4th year is 12¾%. What is the net present value of the cash flows? Show Calculations.
Year | Cash Flow |
0 | -$10,000 |
1 | 800 |
2 | 800 |
3 | -800 |
4 | 12,000 |
5 | 500 |
6 | -500 |
7 | 500 |
Related Book For
Posted Date: