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    Present value of cash returns

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    The Swell Computer Company has developed a new line of desktop computers. It is estimated that the cash returns generated by the new product line will be $500,000 per year for the next five years and then $300,000 per year for 3 years after that (the chase returns occur at the end of each year).

    At 9% interest rate, what is the present value of these cash returns?

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    https://brainmass.com/business/cash/present-value-of-cash-returns-360704

    Solution Preview

    To calculate the present value discount the returns at the given ...

    $2.19

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