You want to start a food-truck business. It is expected to generate after-tax cash flows of $40,000 per year in the years 1 through 4 and $50,000 per year in the years 5 through 8. If you discount these cash flows at an annual rate of 10%, what is the present value of your expected cash flows?
a. $285,288 b. $235,048 c. $167,943 d. $828,230
working out the present values (40000/1.1 1 )+ (40000/1.1 2... View the full answer