You are scheduled to receive a $1,500 cash flow in one year, a $2,000 cash flow

Question

You are scheduled to receive a $1,500 cash flow in one year, a $2,000 cash flow in two years, and pay a $1,800 payment in three years. If interest rates are 4 percent per year.

What is the combined present value of these cash flows? (Round intermediate calculations to 2 decimal places. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

You are scheduled to receive a $1,500 cash flow in one year, a $2,000 cash flow in two years, and pay a $1,800 payment in three years. If interest rates are 4 percent per year.

Explanation / Answer

A B C D= B x C Year Cash Flow Pv $1 @4% Present Value of cash flow 1 $1,500 0.9615 $1,442.31 2 $2,000 0.9246 $1,849.11 3 $1,800 0.8890 $1,600.19 Combined present value of cash flows $4,891.61

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