What is the present value of the following set of cash flows at an 8% discount rate?
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Question

What is the present value of the following set of cash flows at an 8% discount

rate?

YR Cash Flow:

1) 1,000

2) -1,000

3) 1,000

4) -1,000

Top Answer

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Present value of cash flows.png

Year
Cash Flow
Present Value Factor @ 8%
Present Value
1
1000
0.9259
925.9
-1000
0.8573
-857.3
1000
0.7938
793.8
-1000
0.735
-735
Total Present Value
127.4

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