How did they calculate the present value?

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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How did they calculate the present value?

Year
Cash flows
Present value@4%
Cumulative Cash flows
(10000)
(10000)
(10000)
1
2830
2721.15
(7278.85)
2
2830
2616.49
(4662.36)
3
2830
2515.86
(2146.5)
4
2830
2419.10
272.60
Transcribed Image Text:Year Cash flows Present value@4% Cumulative Cash flows (10000) (10000) (10000) 1 2830 2721.15 (7278.85) 2 2830 2616.49 (4662.36) 3 2830 2515.86 (2146.5) 4 2830 2419.10 272.60
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