Computing present value of cash flows


You just signed a consulting contract that will pay you $38,000, $52,000, and $85,000 annually at the end of the next three years, respectively. What is the present value of these cash flows given a 10.5 percent discount rate?

$157,131
$154,880
$139,975
$148,307
$162,910

 

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Finance Basics: Computing present value of cash flows
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