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?© BrainMass Inc. brainmass.com June 3, 2020, 8:06 pm ad1c9bdddf
In order to find the present value of the cash flows we need to discount the cash flows. ...
The solution explains how to calculate the present value of cash flows using step by step information and formula.