# Present Value of Cash Flow Stream

An investment promises the following cash flow stream: $1000 at Time 0; $2000 at the end of Year 1 (or at T=1); $3000 at the end of Year 2; and $5000 at the end of Year 3. At a discount rate of 5%, what is the present value of the cash flow stream?

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#### Solution Preview

In order to find the present value of the cash flows we need to discount the cash flows. ...

#### Solution Summary

The solution explains how to calculate the present value of cash flows using step by step information and formula.

$2.19