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he present worth of the cash flow series in year O is $ 4815.59

he present worth of the cash flow series in year O is $ 4815.59

Essentials Of Investments
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
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he present worth of the cash flow series in year O is $ 4815.59
Transcribed Image Text:he present worth of the cash flow series in year O is $ 4815.59
Expert Solution
Step 1
Year cash flow 15% fACTOR=1/(1+0.15) PV=CF*F
1 700 (1/1.15)1 700*0.8695=608.65
2 800 (1/1.15)2 800*0.7561=604.88
3 900 (1/1.15)3 900*0.6575=591.75
4 1000 (1/1.15)4 1000*0.5717=571.7
5 1100 (1/1.15)5 1100*0.4971=546.81
6 1200 (1/1.15)6 1200*0.4323=518.76
7 1300 (1/1.15)7 1300*0.3759=488.67
8 1400 (1/1.15)8 1400*0.3269=457.66
9 1500 (1/1.15)9 1500*0.2842=426.39
10 1600 (1/1.15)10 1600*0.2471=395.36
11 1700 (1/1.15)11 1700*0.2149=365.398
12 1800 (1/1.15)12 1800*0.1869=336.42
13 1900 (1/1.15)13 1900*0.1625=308.75

 

 

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