Suppose that you will receive annual payments of $10,000 for a period of 10years. The first payment will be made 4 years from now, if the interset rate is 5%, what is the present value of this stream of payments?
2006-07-08 02:11:51 · 3 answers · asked by lostreasureshop 2 in Business & Finance ➔ Personal Finance
Right now the net present value is $66,703.25 with a discount rate of 5%
One year from now it'll be $70,038.41
Two years from now it'll be $73,540.33
Three years from now it'll be $77,217.35
Four years from now the $10,000 annual cash flows start.
2006-07-08 02:30:22 · answer #1 · answered by BillVal 1 · 5⤊ 0⤋
This site has the formula: http://www.charleswarner.us/FinancialCalculations.htm
This site will calculate it for you:
http://www.econmodel.com/classic/calculators/pv2.php
2006-07-08 09:17:11 · answer #2 · answered by thylawyer 7 · 0⤊ 0⤋
83,064. Do your own hw, please.
2006-07-08 09:19:31 · answer #3 · answered by teacher 1 · 0⤊ 0⤋