# Cash Flow Scenario and Annuity Due

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Is there an easy or short cut to answering the question below? I need to verify my answer. I used the formula 1/(1.021). Thanks

Cash Flow Scenario: Lease. Annual payments of $50,000 paid at the beginning of each of the next five years (total of $250,000). What is the NPV of all lease payments?

year 1 NPV $50,000

year 2 NPV $48,972

year 3 NPV $47,964

year 4 NPV $46,978

year 5 NPV $46,012

Total: $239,925

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This solution explanation of the annuity due formula for calculation of cash flow scenarios.

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This would be an annuity due (the difference between annuity due and normal annuity is that annuity due ...

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