The appropriate discount rate for the following cash flows is 6.98 percent per year. Year Cash Flow 1 $ 2,400 2 0 3 3,840 4 2,090 What is the present value of the cash flows?
The appropriate discount rate for the following cash flows is 6.98 percent per year. Year Cash Flow 1 $ 2,400 2 0 3 3,840 4 2,090 What is the present value of the cash flows?
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
The appropriate discount rate for the following cash flows is 6.98 percent per year. |
Year | Cash Flow | |||||
1 | $ | 2,400 | ||||
2 | 0 | |||||
3 | 3,840 | |||||
4 | 2,090 | |||||
What is the present value of the cash flows? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) |
Present Value
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