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Calculating present value of a stream of cash flows

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What would be the present value of receiving $100, $200, $300, at the end of 1, 2, 3 years respectively at 8% annual compound interest.

Do not use MS Excel or present value tables.

Please provide formulas/calculations for your response.

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Solution Summary

The solution depicts the steps to calculate present value of a stream of cash flows.

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Solution:

Present Value of a single future cash flow =Future value/(1+interest ...

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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