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# What is the PV value?

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Assume that your required rate of return is 12% and you are given the following streams of cash flow:
Year Cash Flow
0 \$10,000
1 \$15,000
2 \$15,000
3 \$15,000
4 \$15,000
5 \$20,000

If the payments are made at the end of each period, what is the PV of the cash flow stream?

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I need help calculating this. What is the PV value?
Assume that your required rate of return is 12% and you are given the following streams of cash flow:

Year Cash Flow
0 \$10,000
1 \$15,000
2 \$15,000
3 \$15,000
4 \$15,000
5 \$20,000

If the payments are made at the end of each period, what is the PV of the cash flow stream?
PV = 10,000 + 15,000/1.12 + 15,000/(1.12)^2 + 15,000/(1.12)^3 + 15,000/(1.12)^4 + 20,000/(1.12)^5

PV = 10,000 + 13,392.86 + 11,957.91 + 10,676.70 + 9,532.77 + 11,348.54

PV = 66,908.78

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

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