Congratulations!!! You just landed your first job as a financial analyst for RB International. Your new bossis looking at an investment with the following timeline and cash flow. Including the initial outlay (which isat time 0), what is the present value of this investment assuming a 12% interest rate?Year10Cash Flows (1,000)O $658.31O $89247O $1.119.54O $1.257.61O $1.339.76Year1395Year2135Year3920Year4610Year51,475

Present value refers to the current worth of the future expected stream of cash flows.

Congratulations!!! You just landed your first job as a financial analyst for RB International. Your new boss is looking at an investment with the following timeline and cash flow. Including the initial outlay (which is at time O), what is the present value of this investment assuming a 12% interest rate? Cash Flows O $658.31 O $89247 $1.119.54 O $1.257.61 O $1.339/76 Year 0 (1,000) Year 1 395 Year 2 135 Year 3 920 Year 4 610 Year 5 1,475

Congratulations!!! You just landed your first job as a financial analyst for RB International. Your new boss is looking at an investment with the following timeline and cash flow. Including the initial outlay (which is at time O), what is the present value of this investment assuming a 12% interest rate? Cash Flows O $658.31 O $89247 $1.119.54 O $1.257.61 O $1.339/76 Year 0 (1,000) Year 1 395 Year 2 135 Year 3 920 Year 4 610 Year 5 1,475

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Congratulations!!! You just landed your first job as a financial analyst for RB International. Your new boss
is looking at an investment with the following timeline and cash flow. Including the initial outlay (which is
at time 0), what is the present value of this investment assuming a 12% interest rate?
Year
10
Cash Flows (1,000)
O $658.31
O $89247
O $1.119.54
O $1.257.61
O $1.339.76
Year
1
395
Year
2
135
Year
3
920
Year
4
610
Year
5
1,475

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