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

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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.

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YEAR CASH FLOWS DISCOUNT FACTOR PV OF CASH ...

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

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