# A discounted cash flow analysis: what is the present value of the cash flows?

If the appropriate discount rate for the following cash flows is 12.25 percent per year, what is the present value of the cash flows?

Year 1 Cash flow is $1500.

Year 2 cash flow is $3200.

Year 3 cash flow is $7200.

Year 4 cash flow is $9600.

https://brainmass.com/business/discounted-cash-flows-model/a-discounted-cash-flow-analysis-what-is-the-present-value-of-the-cash-flows-2371

#### Solution Preview

Please view the attached Excel sheet.

YEAR CASH FLOWS DISCOUNT FACTOR PV OF CASH ...

#### Solution Summary

The solution discloses all the computations necessary to understand the problem together with the solution.

$2.19