Present value of the cash flow, Accounting Basics

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Present value of the cash flow

Problem:

The appropriate discount rate for the following cash flows is 7.38 percent per year. Year Cash Flow 1 $ 2,480 2 0 3 3,920 4 2,170

Required:

Question 1: What is the present value of the cash flow?

Question 2: How is this solved on an Financial Calculator?

Note: Show supporting computations in good form.

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Accounting Basics: Present value of the cash flow

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Accounting Basics: Present value of the cash flow

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