# 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?

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## 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

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