Suzanne has identified a project with the following cash flows.What is the present value of the cash flows at time 0 if the interest rate is 17%?

A) $3,058.75
B) $3,578.74
C) $2,614.32
D) $4,225.00
E) $3,521.63

Question

Suzanne has identified a project with the following cash flows.What is the present value of the cash flows at time 0 if the interest rate is 17%?

A) $3,058.75 
B) $3,578.74 
C) $2,614.32 
D) $4,225.00 
E) $3,521.63

Quizplus · Accepted Answer

Find the present value of each cash flow and then add them together.
PV = 11ea7fdb_fc2b_41a8_a768_41e183777690_TB2902_00 PV = 11ea7fdb_fc2b_41a9_a768_bf0eafc7e66a_TB2902_00 = $1,709.40
PV = 11ea7fdb_fc2b_41aa_a768_e58de85b30ab_TB2902_00 = $474.83
PV = 11ea7fdb_fc2b_41ab_a768_3ddf16c47acd_TB2902_00 = $234.14
PV = 11ea7fdb_fc2b_41ac_a768_a52c4c121cdb_TB2902_00 = $640.38
1,709.40 + 474.83 + 234.14 + 640.38 = $3,058.75

Suzanne Has Identified a Project with the Following Cash Flows