Required information As indicated, some of the cash flows are expressed in future (then-current) dollars and others in current-value (today's) dollars. Use a real interest rate of 10% per year and an inflation rate of 6% per year. Year 10 3 4 7 Cash Flow, $ 19,000 38,500 22,000 28,500 Expressed As Today's Then-current Then-current Today's NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Find the present worth of the estimated cash flows. The present worth of the estimated cash flows is $91451.92
Required information As indicated, some of the cash flows are expressed in future (then-current) dollars and others in current-value (today's) dollars. Use a real interest rate of 10% per year and an inflation rate of 6% per year. Year 10 3 4 7 Cash Flow, $ 19,000 38,500 22,000 28,500 Expressed As Today's Then-current Then-current Today's NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Find the present worth of the estimated cash flows. The present worth of the estimated cash flows is $91451.92
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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Required information
As indicated, some of the cash flows are expressed in future (then-current) dollars and
others in current-value (today's) dollars. Use a real interest rate of 10% per year and an
inflation rate of 6% per year.
Year
10
3
4
7
Cash Flow, $
19,000
38,500
22,000
28,500
Expressed As
Today's
Then-current
Then-current
Today's
NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to
return to this part.
Find the present worth of the estimated cash flows.
The present worth of the estimated cash flows is $91451.92
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