Problem:
Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received at the end of the year.
Required:
Question: If you require a 12 percent rate of return, what is the present value of these cash flows?
Note: Show all workings.