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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?

    © BrainMass Inc. brainmass.com October 2, 2022, 12:46 pm ad1c9bdddf
    https://brainmass.com/business/finance/present-value-cash-flow-stream-example-problem-307003

    SOLUTION This solution is FREE courtesy of BrainMass!

    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!

    © BrainMass Inc. brainmass.com October 2, 2022, 12:46 pm ad1c9bdddf>
    https://brainmass.com/business/finance/present-value-cash-flow-stream-example-problem-307003

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