Present value of the stream of cash flows
Problem: Find the present value of the following stream of cash flows assuming that the firm's cost is 14% and that these amounts are received at the end of each year.Year Amount1 - 5 $20,000/year6 - 10 $35,000/year
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Find the present value of the following stream of cash flows assuming that the firm's cost is 14% and that these amounts are received at the end of each year.
There are four basic calculations: PV of a lump sum, FV of a lump sum, PV of an annuity, and FV of an annuity.
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