Accounting question Joseph has just accepted a job as a stockbroker.He estimates his gross pay each year for the next3 years is $35,000 in year 1, $21,000 in year 2, and$32,000 in year 3. What is the present value ofthese cash flows if they are discounted at 4%?

Final Answer:The present value of the cash flows discounted at 4% is approximately $81,517.41.

Answered: Joseph has just accepted a job as a…

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter14: Multinational Capital Budgeting

Section: Chapter Questions

Problem 1IEE

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Joseph has just accepted a job as a stockbroker. He estimates his gross pay each year for the next 3 years is $35,000 in year 1, $21,000 in year 2, and $32,000 in year 3. What is the present value of these cash flows if they are discounted at 4%?