Biogenesis Inc., expects the following cash flow stream over the next five years. The company discounts all cash flows at a 23 percent discount rate. What is the present value of this cash flow stream

The present value of the cash flows is $ - 384,711.72

Find below the missing cash flows:

Year 1 2 3 4 5

Cash flow$ (1,133,676) $ (978,452) $275,455 $878,326 $1,835,444

Explanation:

The computation of the present is done by the cash the cash flows by the discount factor, which is given:1 / (1+r) ^N

r is the discount rate of 23%

N is the relevant year of cash flow

Year Cash flow discount factor:1 / (1+23%) ^1

1 - $1,133,676 0.81301 (921,687.80)

2 - $978,452 0.66098 (646,739.37)

3 $275,455 0.53738 148,025.09

4 $878,326 0.43690 383,738.43

5 $1,835,444 0.35520 651,951.94

total net present value (384,711.72)