You receive $1000 per year for 10 years beginning 1 year from today and you receive an additional $4000 10 years from today. If the interest rate is 6%, what is the value today of this stream of cash flows?

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17-06-2024
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You receive $1000 per year for 10 years beginning 1 year from today and you receive an additional $4000 10 years from today. If the interest rate is 6%, what is the value today of this stream of cash flows?

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CrazyOctopus1234idn CrazyOctopus1234idn · Answer 1 · 2024-06-17T09:17:38-04:00

CrazyOctopus1234idn CrazyOctopus1234idn

17-06-2024

Answer:

$9594.06

Explanation:

To find the present value of the cash flows given an interest rate of 6%, we need to discount each cash flow to its present value and then sum them up.

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