# What is the present value of future benefits?

I have several accounting problems that I cannot do. I need help with the formulas for the problems. ex. Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $33.00. What is the present value of all future benefits if a discount rate of 11 percent is applied? (Round all values to two places to the right of the decimal point).

© BrainMass Inc. brainmass.com October 9, 2019, 7:48 pm ad1c9bdddfhttps://brainmass.com/economics/finance/what-is-the-present-value-of-future-benefits-129875

#### Solution Preview

Here we have to find the present value of all the cash inflows that Jack Hammer is ...

#### Solution Summary

This solution determines the present value.

$2.19