Ask Question
15 May, 17:58

You are scheduled to receive a $490 cash flow in one year, a $790 cash flow in two years, and pay a $390 payment in three years. If interest rates are 8 percent per year, what is the combined present value of these cash flows?

a. $890.00

b. $1,280.00

c. $1,440.60

d. $821.41

+4
Answers (1)
  1. 15 May, 18:40
    0
    The answer is c. $1,440.60

    Explanation:

    Present value = PV of cash flows

    PV = $490 (1.08^-1) + $790 (1.08^-2) + $390 (1.08^-3)

    PV = $1,440.5959 = $1,440.60
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You are scheduled to receive a $490 cash flow in one year, a $790 cash flow in two years, and pay a $390 payment in three years. If ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers