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Present value of cash flow

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For each of the cases shown in the following table, calculate the present value of the cash flow, discounting at the rate given and assuming that the cash flow is received at the end of the period

Case Single Cash Flow Discount rate End of period (Years)
A 7,000 12% 4
B 28,000 8% 20
C 10,000 14% 12
D 150,000 11% 6
E 45,000 20% 8

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Solution Preview

Use the compound interest formula to calculate the present value
PV = FV ...

Solution Summary

The expert examines the present value of a cash flow.