# Present Value of a stream of cash flows

Find the present value of the following stream of cash flows assuming that the firm's cost is 14% and that these amounts are received at the end of each year.

Year Amount

1 - 5 $20,000/year

6 - 10 $35,000/year

https://brainmass.com/business/annuity/present-value-of-a-stream-of-cash-flows-220872

#### Solution Preview

Note: the abbreviations have the following meanings

PVIF= Present Value Interest Factor

PVIFA= Present Value Interest Factor for an Annuity

They can be read from tables or calculated using the following equations

PVIF( n, r%)= =1/(1+r%)^n

PVIFA( n, r%)= =[1-1/(1+r%)^n]/r%

Find the present value of the following stream of cash flows assuming that the firm's cost is 14% and that these amounts are received at the end of each ...

#### Solution Summary

Calculates Present Value of a stream of cash flows.

$2.19