What is the present value of all cash flows


Problem

Assume the current interest rate is 3% and it is expected to increase by 1% per year in the next three years. Afterwards (since year 4), the interest rate will be assumed as 2%. The cash flows are as follows.

Year 2 200
Year 4 400
Year 7 1000

What is the present value of all cash flows?

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Finance Basics: What is the present value of all cash flows
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