Question: Use amount and annuity techniques to calculate the present value of the following pattern of annual cash flows at an annual interest rate of 12%.

Use amount and annuity techniques to calculate the present value of the following pattern of annual cash flows at an annual interest rate of 12%. Round to the nearest dollar.

Use amount and annuity techniques to calculate the present value

Years 1-4 5-9 10 Cash Flow per vear S20,000 S30.000 S40,000

Step by Step Solution

3.37 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The first 4 years require a simple annuity calculation PVA PMTPVF... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

465-B-F-F-M (6296).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!