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You are given three investments alternatives to analyze. The cash flows from these three investments are as follows:

You are given three investments alternatives to analyze.  The cash flows from these three investments are as follows:


End of Year                     A                                           B                                      C

1                                     $1,000                              $1,000                       $5,000

2                                       2,000                                     1,000                                5,000

3                                       3,000                                     1,000                               (5,000)

4                                      (4,000)                                    1,000                               (5,000)

5                                       4,000                                      3,000                              15,000


What is the present value of investments A, B, and C if the appropriate discount rate is 10%?

Top Answer

The present value of investment A=$4 567.56 The... View the full answer

2 comments
  • thanks but I already figured it out.
    • lacheatham
    • May 15, 2018 at 6:04pm
  • Great. You are most welcome.
    • bfacenjoro
    • May 15, 2018 at 6:06pm

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Other Answers

The present value of project A is $4659.22 The present value of project B is... View the full answer

Present Value: A value that states the current worth of a future sum of cash... View the full answer

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