# Present value of a series of cash flows

You are considering buying a contract that offers the following cash flows

Year 0=$100 1=$100 2=$200 3=$300 4=$400 5=$400 6=$400

If your required rate of return is 12% for cash flows received between year 0 through year 2 and 6% thereafter, what is the maximum you should pay for the contract?

possible answers

a)1341.20 b)1378.46 c)1981.20 d)1320.54

e)1522.54 f)1230.54 g)2600 h)1700

i)1100 j)1400.

https://brainmass.com/business/statement-of-cash-flows/present-value-series-cash-flows-28623

#### Solution Summary

The solution calculates the present value of a series of cash flows.

$2.19