SOLUTION: present value of an uneven stream of payments)
you are given 3 investments alternatives to analyze. the cash flows from these 3 investments are as follows.
end of year A
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Question 1160361: present value of an uneven stream of payments)
you are given 3 investments alternatives to analyze. the cash flows from these 3 investments are as follows.
end of year A B C
1 2000 2000 5000
2 3000 2000 5000
3 4000 2000 (5000)
4 (5000) 2000 (5000)
5 5000 5000 15,000
what is the present value of each of these 3 investments if the appropriate discount rate is 10%.
is any of these answers correct that i attempted below.
A) $25,174.10 or $6992.32
B) $25,763.40 or $9444.38
C) $56,274.40 or $10,819.86
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
i used excel to make the calculations easier.
if i present worthed to year 1, i didn't get a match.
if i present worthed to year 0, i got a match.
the matches are shown in red.
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