Explore BrainMass

Explore BrainMass

    Present Value of Cash Flow Stream

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    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.