Present value of the cash flows


Problem: You just signed a consulting contract that will pay you $38,000, $52,000, and $85,000 annually at the end of the next three years, respectively. What is the present value of these cash flows given a 10.5 percent discount rate?

  • $157,131
  • $154,880
  • $139,975
  • $148,307
  • $162,910

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Finance Basics: Present value of the cash flows
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